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Exclusive: Musk’s banks to book Twitter loan losses, avoid big hits -sources
NEW YORK, Dec 13 (Reuters) – Some of the financial institutions that lent Elon Musk $13 billion to get Twitter are getting ready to book losses on the loans this quarter, but they are possible to do so in a way that it does not develop into a key drag on their earnings, according to three sources with immediate knowledge of the scenario. Banking institutions ordinarily promote such financial loans to traders at the time of the offer. But Twitter’s loan providers, led by Morgan Stanley (MS.N), could face billions of bucks in losses if they attempted to do so now, as traders shy away from acquiring risky debt all…
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Twitter Lawyers Call Musk’s Deal Termination ‘Wrongful’ (1)
Twitter Inc.’s legal professionals called Elon Musk’s termination of his $44 billion buyout arrangement “invalid and wrongful” in a letter to the billionaire’s lawyers, a preliminary phase by the social community in the looming authorized battle over the offer. Twitter attorney William Savitt, of Wachtell, Lipton, Rosen & Katz, wrote to Musk’s legal professionals at Skadden Arps Slate Meagher & Flom LLP, saying that backing out of the deal “constitutes a repudiation of their obligations underneath the arrangement,” in accordance to a duplicate of the July 10 letter submitted with the Securities and Exchange Fee. Musk agreed to invest in Twitter for $54.20 for every share in late April. “Twitter…
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