Tesla CEO Ilan Musk increased his stake in his bid to take over Twitter and lowered leverage on his $ 44 billion bid.
Mask will offer another $ 6.25 billion in equity financing, bringing its total stock financing to $ 33.5 billion, according to a watchdog on Wednesday.
According to Bloomberg and viewed by Al-Arabiya.net, this is enough to cancel a loan.
The new structure could reduce trading risk for both Mask and its lenders, especially given the recent drop in Tesla’s share price, as the electric car maker shares since Mask first announced his shares on Twitter. In early April it fell by 40%. Successive cuts have increased the likelihood that mortgage stocks will not be enough to cover marginal lending.
Nevertheless, Musk is still struggling to raise $ 33.5 billion as he seeks additional financial commitments, including talks with Twitter founder Jack Dorsey and other investors about whether they can retain their Twitter stock. To expose another
Musk announced earlier this month that it had already raised $ 7.1 billion in equity commitments from investors including billionaire Larry Ellison, Sequoia Capital and Bainance.
Mask sold $ 8.5 billion in Tesla stock to help raise money for his Twitter deal, tweeting at the time that he had no plans to sell more shares.
Shares of Twitter closed at $ 37.16 on Wednesday, well below the $ 54.20 offered by Mask.
Shares in after-hours trading rose 6.8 percent, while shares of Tesla fell 1.4 percent.
Source: Lebanon Debate
