Twitter shares fell after warnings of re-pricing

Twitter’s stock price fell 4.1% on Monday, after the investment research firm focused on “short selling” Hindenburg Research warned that there is a strong possibility of re-pricing the stock in the offer currently submitted to buy the company by billionaire Elon Musk for 44 billion dollars.

On April 14, Musk, the owner and president of the American electric car maker Tesla, submitted an offer to buy Twitter at $54.20 per share. At first, doubts arose about the billionaire’s ability to provide the necessary liquidity to finance the deal, but only 10 days later he announced the plan to finance the deal, which was then approved by the Twitter board of directors.

Analysts at Hindenburg said that there have been several developments that have weakened Twitter’s position since the deal was announced, and thus threaten the mechanisms of the current deal.

Analysts pointed to the continued decline in technology stocks in general, Twitter’s weak results during the first quarter of this year, and the possibility that Musk would sell his current stake in the company, which exceeds 9%, if the full acquisition does not succeed.

“We support Musk’s attempts to acquire Twitter and delist its stock, and we believe he can do so, but we see no reason to do so at the previously announced price,” Hindenburg analysts said.