Elon Musk's move to buy Twitter faces roadblocks

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Elon Musk has the option of sidestepping the board and trying to buy shares directly from shareholders on the market.

Elon Musk's fortune does not mean it will be easy for him to buy TwitterEven for the richest person on the planet, buying Twitter was always going to be a challenge –- a highly complex financial transaction now made even trickier by a defensive"poison pill" move from the platform's board.

Even with a moderate and inflexible proposal, which could help the board argue for rejection, it's a fraught moment that could end in lawsuits from just about everyone involved. "The Twitter board has limited ability under Delaware law to stop a tender offer made directly to the shareholders, which Elon Musk hasn't done, but which he could do if he chose to," Kaiser said.

Musk said at a TED Conference that he had"sufficient funds" to consummate the deal, but financial analysts describe the situation as more complicated.Musk would need to turn a chunk of his Tesla holding into cash, either by selling shares or taking out loans with stock as collateral. He asked whether taking the company private for his offered price should be up to shareholders and not the board.

 

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