The Wall Street Journal reported on Wednesday, citing people familiar with the matter, that US regulators are investigating a delay in the disclosure of its large stake in Twitter last month.
The report said that Musk disclosed a 9.2 percent stake in Twitter to the US Securities and Exchange Commission (SEC) on April 4, at least 10 days since exceeding the 5 percent threshold to disclose shareholding. delay of.
An investor crossing a 5 percent stake must file a form with the SEC within 10 days. This serves as an early signal to stakeholders that a large investor may be trying to take control of the company.
The SEC declined to comment on the report and Tesla’s top boss did not immediately respond to a Reuters request for comment.
In addition to the delay, Musk’s April 4 filing also painted his stake as dormant, meaning he did not plan to take over Twitter or affect its management or business.
The next day, however, he was offered a position on Twitter’s board, and a few weeks later, the world’s richest man struck a $44 billion (about Rs 3,41,345 crore) deal to buy the social media giant. .
Known for his candid Twitter posts, Musk has a long history of skirmishes with the SEC.
Recently, a US judge reprimanded him for requiring him to monitor his Tesla tweets to try to avoid a settlement with the SEC.
In April, The Information reported that the Federal Trade Commission was investigating whether Musk violated a law that requires companies and individuals to report certain large transactions to antitrust-enforcement agencies.
© Thomson Reuters 2022