Elon Musk's plan to acquire Twitter intensified Thursday as the Tesla chief executive said he received commitments for $46.5 billion to help finance the offer, according to a new securities filing. Twitter stock edged up.
In the securities filing dated April 20, Musk also suggested he might make a tender offer for Twitter shares, thus purchasing the company's stock directly from shareholders.
Musk said he's secured about $25.5 billion in debt financing through Morgan Stanley Senior funding and other firms. Participating firms include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas. Musk also described an equity commitment of $21 billion from himself.
The Wall Street Journal also reported that Apollo Global Management is considering participating in a bid for Twitter.
Action In Twitter Stock
Twitter stock edged up 0.8% to close at 47.08 on the stock market today. Since Musk initially said he'd buy Twitter for $54.20 a share last Wednesday, Twitter stock is up about 2%.
Musk, who is CEO of SpaceX in addition to Tesla, offered to buy Twitter last week for about $43 billion. The Twitter board responded on Friday with a shareholder rights plan, a so-called "poison pill" in its attempt to defeat a potential hostile takeover.
Twitter invoked the poison pill to hinder Musk's ability to raise his stake beyond 15%. Musk previously revealed he currently owns a 9.1% stake in the company.
In the filing, Musk state he has "not commenced, or determined to commence, any tender offer for Shares of Twitter. The Reporting Person (Musk) may, directly or indirectly, take such additional steps as he may deem appropriate to further the Proposal or the Potential Offer," the filing says.
Twitter has said it's reviewing Musk's takeover proposals but has not formerly rebuffed any offer.
Quarterly results for Twitter stock are scheduled before the market open on Thursday, April 28.
Musk Wants To Take Twitter Private
When Musk revealed his plan to buy Twitter last week he said, "I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy," Musk said in the SEC filing.
He went on to say: "However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company."
That day, Twitter stock fell 1.7%, closing at 45.08.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
