Tesla seeks wide investor pool in push to go private
August 10, 2018 @ 7:02 pmDinesh Nair, Alex Barinka and Ruth David
Tesla Inc. CEO Elon Musk and advisers are seeking a wide pool of investors to back
a potential take-private of the automaker to avoid concentrating ownership among a
few new large holders, according to people familiar with the matter.
Tesla is holding early discussions with banks about the feasibility and structure of a
possible deal, the people said, asking not to be identified as the details aren’t public.
They are canvassing investors including large asset managers, the people said.
Billionaire founder Musk would prefer to amass a group of investors who could each
contribute part of the funds because he wants to avoid having one or two large new
stakeholders in the company, the people said. Deliberations are at an early stage
and the company hasn’t yet formally hired a bank to work on the process or made
a final decision on how to proceed, they said.
A representative for Tesla didn’t immediately respond to a request for comment.
Tesla’s shares briefly turned negative on the news and traded up 0.8 percent at
4:05 p.m. in New York.
So now it should be apparent to most that Musk wants his cake and eat it too,
he's opening up the idea to go private as a way to increase investment and
to limit the influence of major stake holders. Anyone who opposes will be
offered a $420/ share buy out.... but will those shares then be sold to new
incoming investors? I think that's the plan so Musk doesn't have to find
anywhere near as much finance as most think...
Edited by jpd80, 10 August 2018 - 09:41 PM.