Elon Offers $54.20 per Share for Twitter
Musk said he invested in Twitter because of its “potential to be the platform for free speech around the globe” but he believes it “needs to be transformed as a private company.”
To recap, it was only 10 days ago that we found out about Musk’s stake in Twitter. He was invited to join the board. Then he declined to join the board.
He’s being sued for filing his Form 13D late. And now he’s offering to purchase the company outright.
It’s been a busy two weeks…
$54.20 doesn’t seem like much of a premium considering Twitter traded as high as $80 just last year, but it represents a generous valuation.
Shareholders are in a tough position because if they don’t accept, the stock is likely to give back the 35% rally it’s enjoyed since Elon got involved.
He indicated in his letter that this is his “best and final offer” and that he would have to walk away -- or “reconsider” being a shareholder, in the event it is declined.
Moments ago, Twitter announced that it’s hired Goldman Sachs to review Musk’s offer.
And, of course, Musk announced his offer to buy Twitter, with a link to his filing, on Twitter.
We’ll know more very soon.
Here’s The Hot List, with data through April 13, 2022:
In its latest Form 4 filing, Turtle Creek Asset Management revealed an additional 50,000-share purchase of JELD-WEN Holding $JELD.
This brings the firm's total ownership to almost 12.6 million shares, which represents an ownership interest of approximately 13%.
Andrew A. F. Hack, managing director of Bain Capital Life Sciences, a private equity fund that invests in healthcare companies, purchased over $2.4 million of shares in the small-cap biotech stock Marinus Pharmaceuticals Inc $MRNS.
Members of Congress continue to buy stocks, as Rep. Kevin Hern of Oklahoma disclosed some transactions in a recent Periodic Transaction Report.
Hern bought shares of the US-American multinational investment bank Citigroup $C and the energy exploration company Devon Energy $DVN.
Rep. Jim Langevin of Rhode Island purchased between $100,000 and $250,000 of Generac Holdings Inc $GNRC.
Last but not least, there was options flow in the clothing and accessories retailer The Gap Inc $GPS and in the American department store chain Kohl's Corporation $KSS.
Investors are making bullish bets on both these retail stocks.
Stay tuned. We'll be back Friday with more insider action.
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All Star Charts Team