May 2 (Reuters) –
According to sources familiar with the situation, Elon Musk is in negotiations with huge financial firms and high-net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc (TWTR.N) and tying up less of his riches in the deal.
According to Reuters, the banks that agreed to offer $13 billion in loans secured against Twitter last month balked at issuing extra financing for Musk’s takeover due to the San Francisco-based company’s minimal cash flow. Musk has pledged $21 billion in cash as part of the deal.
According to the sources, Musk might utilize the fresh funding to lower his ownership stake to the acquisition.
Musk has reportedly guaranteed some Tesla Inc (TSLA.O) stock to banks in order to secure a $12.5 billion margin loan to help fund the transaction. According to one of the sources, he may try to reduce the size of the margin loan in light of the new investor interest in the deal financing.
Musk’s discussions with private equity firms are another another indicator that he is forging through with the purchase after signing a deal to buy Twitter on April 25.