Elon Musk set complete Twitter takeover by Friday despite protests

Elon Musk to go ahead with purchase of Twitter

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Elon Musk has vowed to complete his $44 billion (£38.4 billion) Twitter takeover deal by Friday, the same day that he faces a court-ordered deadline to complete the acquisition.

The banks led by Morgan Stanley have finished putting together the final credit agreement.

They are now in the process of signing the documentation, one of the last obstacles in providing $13 billion (£11.4 billion) towards the deal.

Delaware Chancery Court Judge Kathaleen McCormick previously ordered Mr Musk to complete the deal by Friday October 28 at 5pm.

She warned that if the deal is not completed by then a new trial date would be set to hear Twitter’s lawsuit seeking the force the sale.

Mr Musk has vowed to provide $46.5 billion (£40.9 billion) in equity and debt financing for the acquisition covering the $44 billion (£38.4 billion) price tag and closing costs.

Morgan Stanley along with Bank of America have agreed to provide $13 billion (£11.4 billion) of debt financing to support the deal.

A group of equity investors which includes Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal will contribute $7.1 billion (£6.2 billion).

Mr Musk is also funding the venture through proceeds from the sale of shares from his electric car company Tesla as well as loans against his remaining stake in the company.

On Tuesday afternoon Twitter shares rose 2.7 percent to $52.91 (£46.17), which is close to Mr Musk’s offer price of $54.20 (£47.30).

It comes as Twitter employees wrote an open letter protesting about Mr Musk’s plan to sack two thirds of the social media sites’ staff when he completes the takeover.

According to The Washington Post the Space X founder is planning to sack three quarters of employees at the social media giant.

The plans reflect previous statements from Mr Musk arguing that the social media company is bloated in terms of its staffing and suffers from a “strong left-wing bias”.

Mr Musk’s proposals, leaked during conversations he had with prospective funders of the deal, would leave Twitter with only 2,000 employees.

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In the letter the employees blasted Mr Musk for the proposed sackings branding them “reckless” and a “transparent act of worker intimidation”.

They said: “Elon Musk’s plan to lay off 75 percent of Twitter workers will hurt Twitter’s ability to serve the public conversation.

“A threat of this magnitude is reckless, undermines our users’ and customers’ trust in our platform, and is a transparent act of worker intimidation.

“A threat to workers at Twitter is a threat to Twitter’s future.

“These threats have an impact on us as workers and demonstrate a fundamental disconnect with the realities of operating Twitter.

“They threaten our livelihoods, access to essential healthcare, and the ability for visa holders to stay in the country they work in.”

The letter goes on to argue that it Mr Musk completes the deal he should promise not to go through with the sackings.

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