Twitter Sells $1 Billion In Junk Bonds To Pay For Stock Buyback
https://www.zerohedge.com/markets/twitt ... ck-buyback
The poison pill is used to do one thing: make a proposed acquisition less appealing for the acquirer.
The flip-in strategy allows current shareholders, except for the acquirer, to purchase additional shares at a discount.
A flip-over strategy, on the other hand, lets shareholders of the target company purchase shares of the acquiring company at a discount if the takeover is successful.
Elon Musk said Friday that his plan to buy Twitter is “temporarily on hold” as he tries to pinpoint the exact number of spam and fake accounts on the social media platform, another twist amid signs of turmoil over the proposed $44 billion acquisition.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk said, indicating he’s skeptical that the number of inauthentic accounts is that low.
Musk later tweeted that he’s “still committed to acquisition.”
Musk has already sold off more than $8 billion worth of his Tesla shares to finance the purchase.
The Tesla CEO undertook not to offer disparaging comments about Twitter while the acquisition is pending. But he’s offered some pointed criticisms in the days since the agreement was reached.
Hindenburg Research, which is actively shorting Twitter stock — the idea of a lowered buyout price could be a reality.
Today’s drop nearly filled the gap from early April down at $39.85.
If Musk maintains his buyout offer at $54.20, Twitter stock will fly.
If he pulls out completely, I can’t imagine a scenario where the shares do not make new lows.
If the new deal is somewhere in between the recent low and $54.20, well, the stock will be volatile.
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