Elon Musk’s plans to take control of Twitter seem to be moving forward. And it’s because if she first announced her $ 43,000 million purchase offer, she has now taken another step before the SEC, the U.S. regulator of markets, documentation proving that you have the necessary funds to make a purchase. As we can see in the documentation, Musk provided letters of commitment worth $ 46.5 million to purchase all of Twitter’s remaining common stock and take control.

Twitter Board of Directors confirmed that he had received the offer and was studying itand states that “I knowcompromise Carry out a careful, thorough and deliberate review to determine what you believe is in the best interests of the company and all Twitter shareholders. “ A very adequate and correct answer, which he does not give us in itself they have no idea what decision they will eventually make.

This answer, as I said, does not give a sign one way or another, but as we told you yesterday, the Twitter message board has already activated the famous poison pillwhich encourages us to think at least in the first place managers prefer not to perform the operation. Whether they disagree with Musk’s vision because he threatened to cut their wages to zero because the billionaire figure doesn’t inspire confidence or because of a mixture of all of the above, we may think they’re more reticent. .

At this point, however, it is important to note that Musk does not need the approval of the board of directors to purchase shares. However, Tesla’s CEO must try to play a friendly buying trick to avoid managers deciding to use a poisonous pill in the face of hostility and generate new actions that will dilute Musk’s share of Twitter.

In addition, however, a very interesting aspect of the documentation submitted by the Musk SEC shows that part of the capital to be purchased would go out of his own pocket, but that the rest would come from a combination of debt and credit lineswill obviously arouse considerable interest to that extent can reach $ 1 billion a year.

We must add that if the Twitter board finally decides to issue a large volume of new shares, the value of the titles will undoubtedly fall. Y this would force Musk to provide more guarantees maintain credit lines and loans, which in turn would increase the operating costs and interest it would have to pay.

So it seems to be the only reasonably safe way for Muska to perform this operation It happens to do it in a friendly way with the current Twitter message board, because they are the only ones who can prevent the operation from becoming more and more burdensome over time. However, they do not seem to be doing well, and some of Musk’s statements do not help in this regard.

With information from Yahoo! Finance and Business Insider