Elon Musk reportedly disclosed his more than 5% stake in Twitter at least ten days late and hid his takeover intentions. US regulators are investigating.
US regulators are investigating Elon Musk’s delay in disclosing his large Twitter stake last month, The Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The billionaire has disclosed 9.2% stake in Twitter to the Securities and exchange commission (SEC), the policeman of the American stock market, on April 4, either with a delay of at least ten days compared to when it exceeded the 5% threshold to reveal a stake, according to the report.
An investor who crosses a 5% stake must, in effect, file a form with the SEC within ten days. It’s a early sign for stakeholders that a large investor might seek to control the company. The SEC declined to comment on the report, and the Tesla boss did not immediately respond to a request for comment from Reuters.
Did Musk play with regulators?
In addition to the delay, the document filed by Elon Musk on April 4 also qualified his participation of passivemeaning that he did not plan to take control of Twitter or influence its management or operations.
The next day, however, he was offered a position on Twitter’s board of directors, and a few weeks later the richest man in the world struck a deal. $44 billion deal to buy social media giant.
The FTC is investigating
Musk, known for his outspoken posts on Twitter, has a long history of disputes with the SEC. More recently, a US judge criticized him for trying to evade an agreement with the SEC requiring monitoring of his tweets about Tesla.
In April, the American media The Information reported that the Federal trade commission, the American police of competition, was investigating for find out if Elon Musk broke a law which requires companies and individuals to report certain material transactions to antitrust law enforcement agencies.
Jack Dorsey, co-founder of Twitter, does not plan to take over the head of the social network
Since Twitter’s board of directors accepted Elon Musk’s $44 billion takeover offer on April 25, there has been little clarity on the new company management once the deal is done.
the Twitter co-founder Jack Dorsey in any case declared on Wednesday that he didn’t want to take over the companyhinting that his stake would be limited if Elon Musk managed to close the takeover deal.
Mr Dorsey, who currently heads US mobile payments company Block, holds a 2.4% stake in Twitteraccording to Refinitiv.