Ahead Of The Closing Of Acquisition By Elon Musk, Twitter Shares Continued To Soar

Elon Musk will make Twitter acquisitions on October 28. (Istration: pixabay)

JAKARTA - Twitter Inc's shares, ahead of Elon Musk's planned acquisition, October 28, continue to work closer to a $54.20 purchase offer per share from the Tesla CEO on Wednesday. This indicates that investors are finally expecting the deal to take place before the deadline of the court at the end of this week.

The social media company's shares last rose 0.3% at the highest level in nearly seven months at 52.94 US dollars. This is the closest figure to Musk's offer since it was announced in mid-April.

"Market doubts appear to be fading but are not completely gone," Randy Frederick, director of trade and derivatives at the Schwab Center for Financial Research, told Reuters.

In the dramatic six months back and forth since Musk announced his offer, Twitter initially rejected the deal by adopting poison pills and then suing the world's richest man after he announced plans to cancel his offer over concerns about spam accounts on the platform. The news sent Twitter shares down as low as $32.50 last July.

Earlier this month, Musk proposed to continue his initial offer worth 44 billion US dollars. He also called for an end to a lawsuit by social media companies that could force him to pay according to the original deal. This fact immediately made Twitter's shares up 24% higher.

The Tesla CEO has also notified fellow investors committed to assisting in funding Twitter's $44 billion acquisition that he plans to close its purchase of social media companies on Friday, October 28. Banks have finally agreed to provide $13 billion in this acquisition financing.

"Wall Street is motivated tovert Musk," said Jason Benowitz, senior portfolio manager at The Roosevelt Investment Group LLC.

"Elon Musk is leading a significant business including Tesla, SpaceX, and soon, Twitter... which may require a huge increase in capital in the future. If SpaceX had an initial public offering one day, it would be a major deal for the banking industry to invest," added Benowitz.