Elon Musk outlined his package to finance a buy-out of Twitter, as he pressed ahead with a proposed hostile takeover which generated strong resistance from the company’s board of directors.

In a filing with the Securities and Exchange Commission (SEC), Musk revealed he had secured $46.5 billion in financing, with $25.5 billion generated through debt, including a margin loan of $12.5 billion against his holdings in car maker Tesla.

Musk added he would provide a total $21 billion of equity, although details on where this portion would come from was undisclosed.

In effect, the package puts Musk on the hook for $33.5 billion of the $46.5 billion total, which he might approach through a consortium.

The remaining $13 billion will be put up by banks, led by Morgan Stanley,

Tender offer
In another key development to the saga, the filing indicated Musk is exploring whether to launch a tender offer to acquire the company’s shares directly from shareholders, after Twitter’s board last week put up its defences against the takeover.

Despite not formally responding to Musk’s advances, Twitter’s board announced a new shareholder rights plan, known as a poison pill, aimed at protecting it from the takeover bid.

The move effectively makes it difficult for a single shareholder to own more than 15 per cent of the company.

Musk stated his offer of $54.20 per share was his best and final price.

He already owns a 9.2 per cent stake and apparently aims to take Twitter private in the name of free speech.