Billionaire entrepreneur Elon Musk made an offer last week to buy social media giant Twitter but was rebuffed by the platform — yet, Musk remained undeterred.
According to an updated filing with the Securities and Exchange Commission on Thursday, Musk is continuing to explore a tender offer to acquire the company’s outstanding stock shares at $54.20 per share in cash.
In addition, he claims to have secured $46.5 billion in financing for the massive deal.
The Washington Examiner notes:
A tender offer is when an interested party appeals directly to shareholders to purchase all or some of a company. Musk had previously gone to Twitter’s board to ask to buy the company for $43 billion and take it private, but the board never responded to the offer and instead adopted a “poison pill” to prevent the Tesla founder from wresting control of the company.
A poison pill is a strategy that can help block companies from being acquired in hostile takeovers. It allows the market to be flooded with new shares should an investor decide to buy up more than a preset percentage of a company’s stock.
After the apparent rejection of Musk’s offer, he began hinting that he might make a tender offer via tweets.
He tweeted, the words to an Elvis Pressley classic, “Love Me Tender,” indicating to many that was a route he was considering for Twitter. He tweeted “[blank space] is the night,” a possible reference F. Scott Fitzgerald’s 1934 novel Tender Is the Night.
“Musk’s original $43 billion offer to the board was a 38% premium over the closing price on the day before news broke that Musk had bought up 9.6% of the company and an 18% increase from the closing price before the purchase was announced,” the Examiner reported.