Latest News

Musk’s Twitter Takeover Hits Snag Over Debt-Financing Issue


S&P 500




Dow 30








Russell 2000




Crude Oil
















10-Yr Bond
















CMC Crypto 200




FTSE 100




Nikkei 225




(Bloomberg) — Talks between Elon Musk and Twitter Inc. to reach a resolution of the $44 billion takeover are stuck in part over Musk’s statement that his offer is now contingent on receiving $13 billion in debt financing, according to people familiar with the matter.

The billionaire’s lawyers said in an Oct. 3 SEC letter that Musk was willing to do the $54.20-per-share deal on its original terms “pending receipt of the proceeds of the debt financing.” The original deal didn’t contain such a contingency.

The discussions between the world’s richest man and the social media platform are aimed at resolving remaining issues before closing the deal, which he originally proposed in April and then reneged on. The two sides are expected to file a motion with the court when they have settled all their questions, which would stop the lawsuit that Twitter filed in the aftermath of Musk’s rejection.

Musk is also seeking to reserve his rights to file a fraud suit over his claims the platform’s executives misled him and other investors about the number of spam and robot accounts among its more than 230 million users, according to one of the people, who asked not to be named discussing non-public matters.

Representatives for San Francisco-based Twitter didn’t immediately respond to requests for comment. Musk didn’t respond to an email seeking comment.

Bank Debt

Seven banks, led by Morgan Stanley, fully underwrote the debt portion of the financing, according to an April filing. As is usual in this type of contract, banks originally planned to sell most of that debt to institutional money managers before the Twitter deal closed, but they have always been on the hook for providing the funding if anything went wrong.

There are very few, if any, ways for banks to get out of providing such debt commitments after signing the contract. And most banks wouldn’t want to, even if it meant preventing a loss — backing out would reflect poorly on their investment banking business and could harm their ability to win new deals with companies and private equity firms in the future.

If the two sides agreed on a resolution, a deal could close quickly, as soon as a week, a person familiar said Wednesday. The deal might close so quickly that the banks would be expected to fund their debt commitments and likely syndicate the offering with investors after the deal closes, Bloomberg reported.

Read more: Twitter LBO Revives $12.5 Billion Headache for Wall Street (1)

Even if the banks have time to sell the debt to money managers, credit market conditions have deteriorated since April. The Morgan Stanley-led group could struggle to find buyers for all the bonds and loans and would likely have to take losses on at least part of the financing package. But that is ultimately the banks’ problem, not Musk’s.

Morgan Stanley didn’t respond to a request for comment about the Musk deal.

Howard Fischer, partner at law firm Moses Singer, sees no legal basis for the banks to be able to get out of the Twitter debt commitments, he said in a phone interview. “Generally it would be hard to have deals go forward if they were contingent on bank financing and that bank financing was not rock solid,” he said.

Shares in Twitter fell 2.4% to $50.07 at 2:05 p.m. in New York. Both sides agreed Wednesday to postpone Musk’s long-awaited deposition in the lawsuit, which is aimed at forcing him to consummate the transaction.

(Updates with comment from lawyer in penultimate paragraph.)

More stories like this are available on

©2022 Bloomberg L.P.



Chicago Faces More Corporate Departures as Tyson Moves Out

(Bloomberg) — America’s top meat company is following in the footsteps of hedge fund Citadel and Boeing Inc. with plans to move white-collar workers out of the Chicago area.Most Read from BloombergTrump Says US Agency Packed Top-Secret Documents. These Emails Suggest Otherwise.Musk Revives $44 Billion Twitter Bid, Aiming to Avoid TrialMar-a-Lago Documents Included Pardons, Emails, Legal BillsSecretive Chip Startup May Help Huawei Circumvent US SanctionsStocks Take Breather After Furious Rally F


Saudi Arabia Defies Expectations and Keeps Oil Prices Steady

(Bloomberg) — Sign up for our Middle East newsletter and follow us @middleeast for news on the region.Saudi Arabia kept oil prices for its main market of Asia largely steady and lowered those for Europe, going against expectations it would hike them and pile more pressure on consumers a day after OPEC+ opted to slash production.State-controlled Saudi Aramco left its key Arab Light grade for November shipments to Asia unchanged from this month at $5.85 a barrel above the regional benchmark. Refi


Lock In High Dividend Yields Before These 3 REITs See A Major Price Jump

When choosing among stocks in the same sector, investors often compare fundamentals like price-to-earnings ratios (P/E) or earnings per share (EPS), balance sheets and other metrics. But it’s also important for investors to compare the relative strength of a stock versus its peers in that sector. In other words, investors also want to consider the stocks that are recently outperforming other similar stocks, because these are the stocks that institutions are buying and will usually continue to pe

Yahoo Finance

Why Ford had ‘no choice’ but to raise F-150 Lightning prices again: Analyst

For the second time in two months, Ford has hiked the price of its electric F-150 Lightning pickup.
Although this time it’s just for the base Pro model, the price hike of around 11% sends the base model to $51,974, from $46,974 before any federal or state tax credits.


Twitter v. Musk judge says the trial is still on

In a new letter filed with Delaware’s Court of Chancery, Judge Kathaleen McCormick says it’s still game on — for now at least. In the letter, sent a day after news broke that Elon Musk would seek to seal the deal with Twitter under the original terms, Judge McCormick is weighing in with an important observation: The trial will still move forward unless either party does something to formally change that. “The parties have not filed a stipulation to stay this action, nor has any party moved for a stay,” Judge McCormick wrote.


US STOCKS-Wall Street drops as the Fed pounds rate hike drum

Wall Street’s major indexes slid further on Thursday as concerns mounted ahead of closely watched monthly nonfarm payrolls numbers that the Federal Reserve’s aggressive interest rate stance will lead to a recession. Before dropping further, markets briefly took comfort from data that showed an increase in weekly jobless claims as it raised hopes the Fed could ease the steady rate hikes it has been implementing since March – the fastest and highest in decades. The equity market has been slow to acknowledge a consistent message from Fed officials that rates will go higher for longer until the pace of inflation is clearly slowing.

Yahoo Finance

What will happen to Aaron Judge’s historic 62nd home run ball?

New York Yankees slugger Aaron Judge’s record-breaking home run ball hasn’t been seen since it flew into the glove of Cory Youmans on Tuesday night, sparking debate over what the fan should do with the historic memorabilia.

‘Remarkable reversal’: President Biden just (quietly) scaled back student loan forgiveness — and the change could impact up to 1.5M borrowers. Are you one of them?

Previous article

Why U.S. gasoline prices are rising again, and where they could go

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News