Updated October 6, 2022 at 8:28 PM ET
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The banks that agreed to finance Elon Musk’s takeover of Twitter face the possibility of big losses now that the billionaire has reversed course and signaled a willingness to go ahead with the deal, in the the latest sign of trouble for debt markets that are crucial to financing acquisitions. .
The $44 billion deal, which Mr. Musk had tried to walk away will be paid in part with about $13 billion in debt that seven banks, including Morgan Stanley Bank of America and Barclays PLC, agreed to offer when the acquisition was sealed in April. .