Elon Musk says he has lined up $46.5 billion in financing to buy Twitter, and he's trying to negotiate an agreement with the company.
Other banks involved in Musk's financing include Barclays, Bank of America, Societe Generale, Mizuho Bank, BNP Paribas and MUFG. Morgan Stanley is one of Twitter’s biggest shareholders, behind Vanguard Group and Musk.Musk's documents say that $13 billion in financing came from Morgan Stanley and the other banks. As much as $12.
Tesla allows executive officers to use shares as collateral for loans, but limits the borrowing to 25% of the value of the pledged shares. Musk owns 172.6 million shares worth $176.47 billion. Just over 51% of his stake already is pledged as collateral, according to a Tesla proxy statement. That means Musk could use the remaining stake to borrow about $21.5 billion.
Shares of Twitter rose slightly to $46.95 in Thursday afternoon trading after the financing became public. The shares are trading at $7.25 below Musk's offer. The revelation of Musk’s prominent financial backers was “mildly surprising” to Groth because “a lot of his wealth is tied to Tesla performance and Tesla has been on the volatile side of stock performance.” On the other hand, Tesla reported strong quarterly results this week and Musk is “viewed as coming through on things. That may be part of it,” Groth said.
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