Investorswho have reservations for whether Elon Musk will complete his takeover Twitter for a financial price of $ 44 billion (41.76 billion euros), sent the shares of the company they held yesterday, Wednesday, to the lowest price level since the announcement of the takeover agreement, two days ago.
Investors are concerned that Musk may not have the necessary financial liquidity to finance the $ 21 billion (€ 19.93 billion) it has to pay, while it may decide to sell Teslawhich may be necessary to find the money needed to complete the Twitter acquisition.
He has previously withdrawn. Earlier in the month 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 euro) deal for the privatization of Tesla, but ultimately did not make a bid.
In addition to, Musk will have to pay $ 1 billion in damages (€ 0.95 billion) in the event of its withdrawal from the agreement. This amount of compensation is only a small part of his fortune, which is estimated by Forbes at $ 240 billion (€ 227.79 billion).
«There is a high percentage of serious risk for the next six months required to complete the agreementSaid Chris Poultz, portfolio manager (Kellner Capital).
Musk representatives did not immediately respond to requests for comment.
Twitter shares in New York fell 2.1% at $ 48.68 (€ 46.20), down significantly from the price of the takeover deal 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.
According to the APE-MPE, Tesla shares fall more than 12% $ 126 billion ($ 119.59 billion) disappeared from its shareholding value on Tuesday amid concerns that Musk would have to sell shares in the electric car maker to pay $ 21 billion for the $ 21 billion of the acquisition of Twitter.
Roy Behren, a board member at Westchester Capital Management, an investment firm that manages $ 5.4 billion ($ 5.13 billion) in investment, said $ 1 billion in compensation was not enough for Musk to consider. twice his withdrawal from the agreement.
“Based on his net worth and the size of the acquisition, the compensation is less than one would expectSaid Behren.
Source: News Beast
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
