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Twitter-Musk Deal Spread Balloons After Buyout Put ‘On Hold’ (1)

May 13, 2022, 8:25 PM

The deal spread on Elon Musk’s proposed purchase of Twitter Inc. ballooned Friday to the widest level since announcement of the plan, after the billionaire sent tweets saying the takeover is “on hold” but he’s still committed.

The spread, which offers an indication of Wall Street’s belief that the takeover will be completed, jumped to $13.48 at Friday close from Thursday’s $9.11. In other words the market increasingly believes Musk is trying to re-price his buyout proposal or even pull out of the transaction.

At current levels, the market is pricing in a roughly 40% probability of the purchase being ...