Elon Musk’s £36bn Twitter takeover could face price slash
Investment firm Hindenburg Research have suggested that Elon Musk’s $44bn (£36bn) Twitter takeover could be repriced if the eccentric billionaire walks away from the bid, potentially slashing the hefty price tag.
“Musk holds all the cards here,” Hindenburg said in a report published earlier today.
“If Elon Musk’s bid for Twitter disappeared tomorrow, Twitter’s equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower”, investment researchers added.
The report comes after a regulatory filing by Twitter revealed that the Tesla chief would only need to pay $1bn to back out of the market-moving deal.
It is understood that Musk is part-funding the deal with $21bn of his own equity and a $12.5bn loan secured against his Tesla stake.
Hindenburg has a shorted the Twitter stock, however the firm has said it was “supportive” of Musk’s efforts to take Twitter private.