The shares of Reuters-Treasury Inc retreated further from Elon Musk'sMusk's offer price on Thursday as investors fretted over financing for the proposed $44 billion buyout of the social media firm because of growing economic uncertainty.
Sources familiar with the matter told Reuters that Apollo Global Management Inc and Sixth Street Partners, which had been looking to provide financing for the deal, are no longer in talks with the billionaire entrepreneur.
The shares of the microblogging site were down barely at $51.12, after rising 20 per cent since Musk proposed this week to go ahead with the April bid of $54.20 per share to take Twitter private.
Randy Frederick, the managing director of trading and derivatives for the Schwab Center, said there was still some uncertainty based on whether or not Elon can find the actual financing to do the deal.
Major banks that committed to fund $12.5 billion, or about 28 per cent of the deal, could be facing hefty losses because of the rapid pace of interest rate hikes and dampened appetite for leveraged financing.
Musk raised $15.4 billion by selling Tesla Inc's shares this year, and is leaning on large investors for a chunk of the financing, leading to speculation about whether he will sell more of the electric-vehicle maker's stock to fund the deal.
Financing will end up going through one way or another. Robert Gilliland, the managing director at Concenture Wealth Management, said that it was just a point of negotiating terms.
Musk and Twitter agreed on a postponing of the billionaire's deposition on Thursday as they try to reach an agreement to end their litigation, a source told Reuters.