4 ms·
I thin it's a fair point that Morgan Stanley are now on the hook for some obviously quite bad debt. I wonder how solid that commitment was, or whether they can
by SilverBirch 4y ago
I thin it's a fair point that Morgan Stanley are now on the hook for some obviously quite bad debt. I wonder how solid that commitment was, or whether they can refuse now and trigger the £1Bn break clause. I would guess Twitter would still pursue Musk to close arguing that he deliberately jeopardised the funding.
- hotpotamus 4y agoThis whole thing reminds me of waking up after a serious night of drinking and trying to figure out the consequences of your actions, and to see if you can get out of them.
- plasticchris 4y agoThis has got to be the play, given his letter and obvious desire to bail. And I expect it will happen, banks don’t like losing money.
- danielmarkbruce 4y agoThere isn't a finance out.
- nocoiner 4y agoThe commitment is pretty solid (though, of course, so is Musk’s, and he’s spent the last six months trying to wriggle out of it). Plus, Morgan Stanley has franchise and reputational risk to consider - if they try to walk on the debt, the next time one of their clients goes to a seller with MS committed financing, that’s going to severely disadvantage that bid (at least for the next couple of years - memories are short and people tend to forget these things). And yes, Twitter would absolutely still pursue Musk in that scenario. A buyer doesn’t get to intentionally blow up his committed financing and win the day by using the Shaggy defense.