Deals
Twitter-Musk Deal Spread Balloons After Buyout Put ‘On Hold’
- Arb traders see a roughly 40% chance of Musk completing deal
- Twitter’s downside price $30 if purchase falls through: Cowen
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The deal spread on Elon Musk’s proposed purchase of Twitter Inc. ballooned Friday to the widest level since announcement of the plan, after the billionaire sent tweets saying the takeover is “on hold” but he’s still committed.
The spread, which offers an indication of Wall Street’s belief that the takeover will be completed, jumped to $13.48 at Friday close from Thursday’s $9.11. In other words the market increasingly believes Musk is trying to re-price his buyout proposal or even pull out of the transaction.