Business tycoon Ilon Musk has notified his co-investors of the $44 billion Twitter acquisition closing by Friday. A source familiar with the matter said shareholders such as Sequoia Capital and Qatar Investment Authority have received financial commitment documents from Musk’s lawyers.
The move is the clearest indication yet that the Tesla leader plans to meet the deadline set in a Delaware court judge’s order to complete the deal by a specified date. The banks obligated to finance Musk’s buyout of the social media platform are currently in the process of signing the necessary documents and have finalized their debt financing and loan agreements. In addition, Musk also promised to close the deal with the bankers helping finance Monday’s video conference. Twitter shares jumped and rose 3 percent at $52.95, which was closer to the offer price of $54.20. Musk said he would provide $46.5 billion in equity capital and $44 billion in debt financing for the acquisition, which includes closing costs.
Financial institutions such as Bank of America Corp and Morgan Stanley have pledged to back the deal with $13 billion in debt financing. The banks are expected to receive one of the final formalities, a notice of loan on Tuesday, and the cash is expected to be held in a legal agreement on Thursday, the source said.
Equity investors such as Saudi Prince Alwaleed bin Talal and Oracle Corp co-founder Larry Ellison will contribute their share of $7.1 billion, ending months of speculation about Musk’s takeover rejection.
