Elon Musk has spelt out how he intends to fund his US$43bn takeover of social media group Twitter Inc (NYSE:TWTR).
In a filing with the US regulator on Thursday, the Tesla boss said he has raised US$46.5bn, of which he will chip in US21bn with a further US$25.5bn coming from a Morgan Stanley (NYSE:MS) arranged senior funding round.
The loan element includes a margin loan based on some of his shares in Tesla but does not list any other equity, according to the filing.
Twitter has yet to respond formally to the offer, the document also notes.
The Tesla and SpaceX boss already owns a 9.2% stake in the social media group, which he acquired just ahead of the launch of his bid.
Musk recently topped Bloomberg’s billionaire index with an estimated fortune of US$249bn but most of that is held in shares in Tesla and not liquid enough to fund a bid wholly himself.
How much he could raise using his shares as collateral is also open to debate say analysts given the volatility in Tesla shares recently.
Musk’s high pubic profile and controversial business style have also made many lenders wary according to reports this week.
The filing did confirm one report, namely that Musk is exploring a tender offer for Twitter shares, though has yet to decide whether to go ahead or not.
Twitter chief executive Parag Agrawal said it would not be 'held hostage' by Musk in a call with staff.
Shares in Twitter were little changed at US$46.77 compared to Musk’s offer of US$54.20 a share.