Business Maverick: Musk Seen by Market Pros as Winning Twitter Deal at Lower Price

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Elon Musk’s takeover of Twitter Inc. has become a big question after a series of mixed messages from the billionaire. But despite the stock’s wild swings, merger experts still expect the deal to go through -- as long as the price comes down.

In a survey of investors and merger specialists conducted by Bloomberg News on Monday and Tuesday, 11 of 14 respondents said they expect the sale to go through at a discount to Musk’sdisclosed

The shares plunged on Friday when Musk tweeted that the acquisition was “temporarily on hold” as he seeks more information on the number of fake accounts on the platform. “Twitter is not trading completely like a broken deal, but awfully close to one,” said Steve Sosnick, chief strategist at Interactive Brokers. “I would say that if trading was truly implying a broken deal — as opposed to there being some hope for a renegotiation — that it would be even lower than it is now.”If the deal falls through, Twitter is likely to trade at $30.86 a share, according to the average of estimates from survey respondents. That’s 17% below Monday’s closing price.

 

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