div classBodysc17zpet90 cdBBJodivpReuters – The stock market took the view for the first time on Tuesday that it was unlikely that Elon Musk will acquire Twitter Inc for 44 billion, as he originally agreed.
The implied probability of the deal closing at that price fell below 50 when Twitter shares hit 46.75, based on the 54.20 deal price and Twitters shares having closed at 39.31 on April 1, the last trading day before Musk revealed he had amassed a stake in the social media company.pdivdivdiv classBodysc17zpet90 cdBBJodiv
Twitter shares fell as much as 3 to touch a low of 46.50 in afternoon trading. p
Musk, the worlds richest person and also the chief executive of electric car maker Tesla Inc, on April 25 clinched a deal to buy the social media platform. Twitter said at the time that Musk secured 25.5 billion of debt and margin loan financing and was providing a 21 billion equity commitment.p
Musk, who is worth 268 billion according to Forbes, had said he was not primarily concerned with the economics of Twitter. p
“Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization. I dont care about the economics at all,” he said in a recent public talk.
Compiled by the Global Finance & Markets Breaking News team Editing by Matthew Lewis and Chizu Nomiyamap
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