Tesla board awaits formal take-private proposal from Musk
Tesla directors have not yet received a formal proposal from CEO Elon Musk to take the company private, they said on Tuesday.
TESLA
$539.60
17:39 26/03/20
The company’s board of directors said they have created a special committee of three directors to evaluate the proposal after Musk announced on 7 August he was considering taking the carmaker private. Board members Brad Buss, Robyn Denholm and Linda Johnson Rice will sit on the committee.
On Monday Musk said financing for the move had already been discussed with Saudi Arabia.
The company released a statement on Tuesday saying: “The special committee has not yet received a formal proposal from Mr Musk regarding any 'going private transaction' nor has it reached any conclusion as to the advisability or feasibility of such a transaction.”
The special committee has retained lawyers Latham & Watkins in addition to a legal team used by the company.
The company said in a statement: “The special committee has the full power and authority of the board of directors to take any and all actions on behalf of the board of directors as it deems necessary to evaluate and negotiate a potential going private transaction and alternatives to any transaction proposed by Mr Musk.
"The special committee’s grant of authority provides that no going private transaction will be consummated without the approval of the special committee. The special committee expects to provide a further update concerning the process associated with Mr Musk’s proposal as soon as practicable.”