Tesla seeks wide investor pool in push to go private

[jpd80]

Tesla seeks wide investor pool in push to go private

August 10, 2018 @ 7:02 pm

Dinesh Nair, Alex Barinka and Ruth David

Bloomberg

 

http://www.autonews.com/article/20180810/OEM/180819934/tesla-seeks-wide-investor-pool-in-push-to-go-private

 

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 August 11, 2018 by jpd80

[fordmantpw]

He said in his tweet that he already had the funding to take it private.