odysseus2000 wrote:One issue is the funding. Musk said he has funding in place, but hasn't filed any forms to say so, but as this is about taking Tesla private it could all be a cashless transfer, i.e. 1 new private share for each existing public share.
But what about the $420 per share considering being offered to people who didn't want to hold untradeable shares?
Anyone taking up such an offer would expect cold hard ca$SSh .
That is the offer that Musk seemed to indicate he was considering, and in theory such an offer could be taken up by all shareholders.
With the shares then being private/unlisted, anyone staying would be taking a huge gamble... importantly, there'd be no means of exit if you had second thoughts, or the company's fortunes turned more to the south.
For many people, I'd suspect the offer of a $420 per share parachute now, at a premium for many to what they paid, or no money at all now combined with a lock in, with no (or very limited) access to the exits, I wouldn't be surprised if there was a high take up of the £420 (if finally offered).
But that assumes the funding really is in place... if you're in a position like his in a company, you could end up in big trouble if you give the market the impression such funding is in place, if it actually isn't - even if you haven't yet decided whether to go ahead with the idea or not.