Talks between Elon Musk and Twitter executives over a $44 billion takeover deal for the social network have stalled in part, according to people familiar with the matter, as the billionaire claims he is now on a $13 billion bank loan reliant.
In a letter Musk’s legal team sent to the US Securities and Exchange Commission (SEC), the entrepreneur was willing to enter into a deal at a price of $54.20 per share on original terms “with the expectation of obtaining debt financing.” receive”.
The parties continue to negotiate to resolve the remaining differences in order to complete the transaction. Once they reach an agreement, they are expected to petition the court to end the trial in a lawsuit filed by Twitter after Musk went out of business.
Musk is also trying to retain the right to file a fraud lawsuit through Twitter, misleading him and other investors about the level of spam and the number of fake accounts, the sources said.
According to the April documentary, seven banks led by Morgan Stanley had to fully cover the credit portion of the financing. Banks are unlikely to waive their obligations even to avoid losses, as this could damage their reputation and affect their ability to complete new transactions with investment companies in the future.
As Expectations According to Bloomberg, the deal could close so quickly that the banks would have to fund their own lending obligations, although they initially planned to sell most of Musk’s debt to institutional asset managers before the Twitter deal went through.