Tesla has been in the news recently for reasons other than electric cars. The company’s CEO Elon Musk tweeted that he was thinking about taking the company private. It’s going to be a major transaction if that happens and will obviously require approval from the board and the company’s shareholders. Tesla’s board has now formed a special panel of three directors which will negotiate with Elon Musk on the plan to go private.

The panel has said that it hasn’t seen a concrete offer from CEO Elon Musk. Its mandate is to evaluate Musk’s proposal. He has previously revealed that $420 per share would be the buyout price offered to shareholders who are willing to part with their shares.

The special panel has the authority to take any action on behalf of the board pertaining to the evaluation and negotiation of a potential transaction as well as any alternatives to the proposal put forward by Musk.

Musk also mentioned that the funding has been secured to take Tesla private. He revealed additional details recently that Saudi Arabia’s sovereign wealth fund has been floating the idea of taking Tesla private for the past two years.

It remains committed to the plan and has also purchased 5 percent of Tesla’s shares from the public markets recently. Musk is also in talks with other investors who might be willing to back this move.

Filed in General.. Source: reuters

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