Twitter’s share price reflects jangled nerves. Since Elon Musk agreed to honour his deal to buy the company the price has risen 10 per cent. Yet it still trades a tenth below the price Musk offered and which Twitter has (again) accepted.
Caution is understandable. The pair were due to go to court but now have until October 28 to close the acquisition. Mud slinging continues. Twitter has accused Musk of buying more time to cause mischief.
In reality, Musk has little room for manoeuvre. He claims the deal is contingent on receipts from debt financing — the $13bn financing package agreed when the takeover was first announced in April. Since then, the S&P 500 has fallen 17 per cent. As US interest rates have risen, the US 10 year benchmark Treasury yield has increased by more than 100 basis points.