Shares of Twitter Inc. (TWTR) slumped 1.6% in afternoon trading, and have now shed 6.3% amid a three-day losing streak, despite assurances from Tesla Inc. (TSLA) chief executive Elon Musk that he has financing commitments for his buyout bid. When Musk disclosed the commitments before the May 5 open, the stock jumped 2.7% that day but still closed 7.1% below the agreed-upon buyout bid price of $54.20. The stock is currently 12.9% below the bid price. The stock's highest close since the bid was announced was $51.70 on April 25, the day Twitter agreed to be acquired, but even that was 4.6% below the bid price. On Monday, the stock fell 3.7% after Hindenburg Research issued a report saying there is substantial risk that Musk lowers his bid price. The "forensic financial research" investor's report said it believes that if the Musk withdrew his bid to buy Twitter, the stock would fall 50% from current levels. "Consequently, we see a significant risk that the deal gets repriced lower," the Hindenburg Research report said. Despite the post-bid weakness, the stock was still up 9.2% year to date, while Tesla shares have tumbled 25.3% and the S&P 500 has dropped 16.6%.
(END) Dow Jones Newswires
May 10, 2022 13:19 ET (17:19 GMT)
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