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Now SEC investigations have delayed disclosure of Elon Musk’s initial Twitter stake, report says


As billionaire Elon Musk is busy raising $44 billion to buy Twitter, the late disclosure of his initial stake in the social media company is being scrutinized by U.S. regulators, a Wall Street Journal report said Wednesday, citing sources.

Earlier, the Federal Trade Commission (FTC) was also probing the purchase of the initial 9% stake in the company, ‘The Information’ reported.

On April 4, the Tesla CEO disclosed his 9.2% stake in the social media company to the United States Securities and Exchange Commission (SEC).

In disclosure, there has been a 10-day delay since the given threshold was exceeded for revealing participation, according to the report.

Also Read: To End Contempt Order, US Judge Tells Trump to Meet Terms and Pay $110,000

If an investor exceeds a 5% stake in a company, it is essential to notify the SEC within 10 days. This seems to be a warning sign to stakeholders that a big investor might be looking to take over the company.

Not only that, in his April 4 filing with the U.S. Securities and Exchange Commission, Musk had also characterized his stake as passive.

This means that the billionaire did not want to influence the management of Twitter or did not plan to take it over.

Watch: Lockdowns weigh on auto sales, Tesla China sales drop 98%

But only the opposite happened. At first, the SpaceX chief was offered a position on Twitter’s board of directors and later offered to buy it for $44 billion. In the end, the deal was also finalized.

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(With agency contributions)

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