Published: Wed, August 15, 2018
Markets | By Jeffery Armstrong

Tesla directors: 'No formal proposal' to take company private

Tesla directors: 'No formal proposal' to take company private

Musk, who is still looking for funding for the plan, also said law firms Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson would be legal advisers on the plan.

Musk tweeted on August 7 that he had "funding secured" to buy Tesla shares at $420 per share. Musk contends the fund approached him about taking Tesla private early past year, noting that two weeks ago he was approached by the fund's managing director who expressed strong interest in financing a go-private deal.

According to Musk, the Saudi sovereign fund expressed its interest in order to diversify from oil and "has more than enough capital needed to execute on such a transaction". Their investigation is part of a larger probe into the information Musk provides on Twitter, including sales targets and other goals.

"My best estimate right now is that approximately two-thirds of shares owned by all current investors would roll over into a private Tesla", he said.

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Musk said Monday he had held talks with a Saudi sovereign fund on a buyout that would take Tesla off the Nasdaq exchange - an extraordinary move for what is now the United States' most valuable automaker.

"I'm excited to work with Silver Lake and Goldman Sachs", Musk tweeted on Monday.

Negotiations are still ongoing with the Saudi sovereign wealth fund and with several other investors.

The shares were last down 1.4 percent at $351.34 on Tuesday.

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Musk's effort to associate his potential bid with some of Wall Street's most venerable institutions, even at the risk of misrepresenting their involvement, comes as pressure has been building on him to justify his pronouncement last week about the "secured" funding.

The committee has the authority to evaluate and negotiate a potential deal, or any alternatives proposed by Mr. Musk, on the board's behalf, Tesla said.

Yeagar's filing reiterates what much of what the prior suits allege: That despite affirmative statements from Musk of having secured proper investment to go private, no such plans had been made. Denholm is the chief operating officer of Telstra, a telecommunications company. Wilson Sonsini Goodrich and Rosati will be legal counsel for Tesla itself.

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