- Twitter stock fell nearly 4% on Thursday as the Elon Musk saga continues.
- TWTR stock now trading nearly 10% below the offer price of $54.20.
- Twitter still has surged from lows of $41 last week.
The will-he-won't-he saga appears to be nearing a conclusion, but it is not over the finish line yet. Market participants and investors look to be doubting the deal if the latest share price movements are anything to go by. Twitter is trading at under $50 now at $49.30 this morning in Friday's premarket. That is a near 10% discount to the offer price of $54.20. Given the deal is due to close shortly, that is a larger-than-usual deal approaching the finish line. Usually, merger arbitrage players would be all over such a discount so near to closure, but this deal has been clouded in uncertainty from the start. Extra caution is obviously being taken in valuing the probability of the deal going through.
Twitter stock news
Always the risk in writing about this one is that the news changes dramatically and quickly, but the latest appears to be that the Twitter trial date to try and force Elon Musk to go through with his purchase has been delayed to allow the deal to go through by October 28, according to the judge. That appears to be good news.
"This action is stayed until 5 PM on October 28, 2022, to permit the parties to close on the transaction," wrote Chancellor Kathaleen McCormick of Delaware's Court of Chancery.
The judge also said if the deal does not close by then, a trial date in November will be set. Various media sources carried news earlier on Thursday that Elon Musk's team had attempted to delay the trial on Thursday, but Twitter responded: "Twitter opposes Defendants' motion...The obstacle to terminating this litigation is not, as Defendants say, that Twitter is unwilling to take yes for an answer. The obstacle is that Defendants still refuse to accept their contractual obligations."
Twitter stock news
The TWTR stock price is obviously volatile as a result of all this contrasting news and is likely to remain so. Will the deal get finished, and if so when? The risk-reward diminishes near the strike or take-out price of $54.20. Technical analysis does not really apply to a merger arbitrage situation.
Twitter stock daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD comes under pressure near 1.0630
Further gains in the Greenback encourage sellers to maintain their control over the risk complex, forcing EUR/USD to retreat further and revisit the 1.0630 region as the US session draws to a close.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.