Twitter ramps up efforts to battle off Musk’s hostile takeover

Twitter has introduced on a second funding financial institution, JPMorgan Chase & Co. to assist it reply to Elon Musk’s hostile bid, based on individuals acquainted with the matter.

The largest US financial institution began work not too long ago to help Twitter in talks with potential consumers, the individuals stated, asking to not be recognized as a result of the matter is non-public.

Representatives for Twitter and JPMorgan declined to remark.

Besides Musk’s supply, Twitter has been fielding takeover curiosity from different events, together with technology-focused non-public fairness agency Thoma Bravo, based on one of many individuals acquainted. The New York Post reported Thoma Bravo’s curiosity on Thursday.

A consultant for Thoma Bravo declined to remark.

What Bloomberg Intelligence Says:

“Musk could decide to partner with Oracle, whose co-founder Larry Ellison sits on Tesla’s board and has expressed interest in acquiring social media company TikTok’s U.S. assets, and a private equity consortium that includes Thoma Bravo to thwart Twitter’s poison pill, while raising the bid 10-15% to about $50 billion.”

–Mandeep Singh, BI senior expertise trade analyst

In bringing on JPMorgan, Twitter is working with a financial institution that hasn’t been afraid to wrangle with Musk. JPMorgan and Musk’s electrical car firm Tesla Inc. have been embroiled in lawsuits.

They are suing one another over inventory transactions, some which can be linked to Musk’s tweet in 2018 that he had secured the funding to take Tesla non-public, an effort that was given up weeks later. The two sides are scheduled to seem in courtroom subsequent week.

JPMorgan is the most recent Wall Street heavyweight to develop into concerned with Musk’s quest to purchase Twitter, and joins Goldman Sachs Group Inc. in serving to cope with the 50-year-old billionaire. Morgan Stanley is working with Musk.

Missing Out

JPMorgan’s involvement can also be a blow to the boutique funding banks, which have been more and more competing for market share in opposition to the bulge brackets.

Twitter was suggested by boutique advisory agency Allen & Co. in 2020 when the corporate was tussling with activist investor Elliott Investment Management, based on knowledge compiled by Bloomberg.

This time round, no boutique funding financial institution seems to be concerned though corporations have a tendency so as to add on extra advisers as transactions drag on.

Goldman, which has been traditionally near Musk, together with being the lead financial institution in 2018’s failed try and take Tesla non-public, was conflicted from advising the billionaire as a consequence of its longstanding relationship with Twitter.

Twitter adopted a so-called poison tablet on Friday, a measure to assist defend it from Musk buying extra of the corporate. The transfer may purchase the board extra time to determine how you can proceed.

Read: Elon Musk launches R630 billion hostile takeover of Twitter

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