Tesla in turmoil as board reveals Musk has NOT bid for his firm

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Tesla in turmoil as special committee reveals Musk has NOT bid for his firm

City & Finance Reporter for the Daily Mail

A special committee set up by Tesla to examine Elon Musk’s plans to take the company private says it has yet to receive an offer.

With speculation mounting over its future, the electric car maker said independent directors Brad Buss, Robyn Denholm and Linda Johnson Rice had been appointed to the panel. 

They have been tasked with examining proposals floated by founder Musk, which have left many Wall Street analysts puzzled.

Buyout? Musk owns almost 20 per cent of Tesla

Buyout? Musk owns almost 20 per cent of Tesla

Buyout? Musk owns almost 20 per cent of Tesla

However, the billionaire, despite claiming financial backing from Saudi Arabia’s sovereign wealth fund, has yet to make a formal proposal.

Musk owns almost 20 per cent of Tesla and announced his idea for a buyout last week on Twitter.

The 47-year-old is working with Goldman Sachs and buyout firm Silver Lake to draw up a detailed proposal, which would see Tesla de-list from the Nasdaq stock exchange.

Investors who do not wish to continue holding shares in a private company would be offered $420 per share.

Tesla said its buyout committee would have powers to negotiate a potential transaction for the board or any alternatives that are put forward.

 

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