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Goldman, Silver Lake Advice Tesla On Going Private Plan

Goldman, Silver Lake Advice Tesla On Going Private Plan

Musk tweeted on August 7 that he had "funding secured" to buy Tesla shares at $420 per share. Funding to take the company private is apparently secured as well.

The SEC is reportedly looking into Musk's tweets about taking the company private, if Musk tweeted that he had "funding secured" for the process without actually having the money to back it up, it could be argued that the CEO was attempting to inflate Tesla stock prices with the tweet which could spell disaster for Musk.

The board had confirmed earlier this month that it had "met several times over the last week" to discuss going private. A week later Musk tweeted, "Am considering taking Tesla private at $420". Tesla has a market capitalisation of $60 billion, bigger than Detroit rivals General Motors Co (GM.N) or Ford Motor Co (F.N), who produce far more cars. "Obviously, the Saudi sovereign fund has more than enough capital needed to execute on such a transaction", Efe quoted him as saying.

In a statement earlier Monday, Musk also shared more details about who might fund such a deal. Silver Lake declined to comment. "Among other things, this will allow me to obtain a more precise understanding of how many of Tesla's existing public shareholders would remain shareholders if we became private".

Board members Brad Buss, Robyn Denholm and Linda Johnson Rice will sit on the committee.




But corporate governance and shareholder voting advisers Glass Lewis and Institutional Shareholder Services said they do not consider Buss an independent director, due to his connections to a solar panel business the company bought two years ago.

Then on Tuesday, the Tesla board said it wasn't clear yet that going private made sense.

Wall Street had voiced doubts about Musk's ability to pull off what could be the largest-ever go-private transaction, valued at as much as $72 billion. Denholm is the chief operating officer of Telstra, a telecommunications company. Rice, the first African-American and second woman to join the board, is CEO of Johnson Publishing Company and Chairman Emeritus of EBONY Media Holdings, the parent of EBONY and Jet brands, according to Tesla's website.

One director, Steve Jurvetson, is now on leave of absence.

Latham and Watkins LLP has been retained by the committee as its legal counsel.

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