Seller Hindenburg Research warned on Monday that Ilona Mask’s $ 44 billion offer to transfer Twitter Inc. to Private could be reduced if the Silicon Valley billionaire declined the deal.

“Mask has all the cards here,” Hindenburg, who has a short position on Twitter, said in a report. “If Ilona Mask’s offer on Twitter had disappeared tomorrow, Twitter’s capital would have fallen by 50% from the current level.

So we see a significant risk that the deal will be reduced. ”

Shares of the social networking platform fell 4% amid a broader market decline and reached $ 47.76, the lowest level since Musk made his offer of $ 54.20 per share in April, calling it “the best and final” .

Twitter declined to comment. Tesla Inc was not immediately available for comment from its CEO Mask.

“We support Mask’s efforts to make Twitter private and see a significant chance that the deal will close at a lower price,” Hindenburg said.

The seller said the deal took place in a number of events, from financing to approval by the board, that could weaken the company’s position.

Hindenburg said Musk could leave by paying $ 1 billion for the gap, and has the leverage to negotiate if he wants to.

Last month, Twitter secured a $ 44 billion cash deal to sell itself to Mask, and received more than $ 7 billion in funding from senior investors, including Oracle co-founder Larry Ellison and Sequoia Capital.

Source by [author_name]

Previous articleRamaphosa calls on all parties E AN Cape ANC to disband lobby groups, focus on unity – SABC News
Next articleTeachers’ unions in Free State complain about shortage of teachers at the initial stage – SABC News