Investors, who have reservations about whether o Elon Musk will complete the acquisition of Twitter Inc for a financial price of 44 billion dollars (41.76 billion euros), they sent yesterday, Wednesday, the shares of the company they held, at the lowest price level since the announcement of the takeover agreementtwo days ago.
Investors are worried that Musk may not have the financial liquidity to finance the $ 21 billion (€ 19.93 billion) he’s to pay, and may decide to sell some of its shares in Tesla Inc. which may be necessary to find the money needed to complete its acquisition Twitter.
He has backed down in the past. Earlier in the month he decided at the last minute not to take a seat on Twitter’s board. In 2018, Musk posted on Twitter that he had “secured funding” for a $ 72 billion (€ 68.34 billion) deal to privatize Tesla, but ultimately did not make a bid.
In addition, Musk will have to pay $ 1 billion (€ 0.95 billion) in compensation if he pulls out of the deal. This amount of compensation is only a small part of his fortune, which is estimated by Forbes at $ 240 billion (227.79 billion euros).
“There is a high percentage of serious risk for the next six months that is required to complete the deal,” said Chris Poultz, portfolio manager at Kellner Capital.
Musk representatives did not immediately respond to requests for comment.
The price of its shares Twitter in New York fell 2.1% to $ 48.68 (€ 46.20), down significantly from the purchase price to $ 54.20 (€ 51.44) leaving a 62% chance of completing the deal , according to Reuters calculations. That figure is relatively unlikely for a final deal, investors say, given that Musk, who has not invested in other social media, is unlikely to be investigated for moves to monopolize the market.
Tesla shares fell more than 12 percent on Tuesday as $ 126 billion ($ 119.59 billion) of its value was lost, following concerns that Musk would have to sell shares in the electric car maker. , to pay $ 21 billion to complete the acquisition of Twitter.
Roy Behren, board member at Westchester Capital Management investment funds $ 5.4 billion ($ 5.13 billion) said the $ 1 billion compensation was not large enough for Musk to reconsider withdrawing from the deal.
“Based on his net worth and the size of the acquisition, the compensation is less than one would expect,” Behren said.
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