01 Aug Tesla, SolarCity set to announce merger on Monday – sources
Tesla Motors Inc and SolarCity Corp could announce they have agreed to merge as early as Monday, according to people familiar with the matter.
While billionaire Elon Musk is chief executive of Tesla, chairman of SolarCity and the biggest shareholder in both companies, a merger agreement was not certain because SolarCity had formed a special committee to review Tesla’s offer independent of the influence of Musk and other executives close to him.
The merger agreement is likely to include a so-called go-shop provision that will allow SolarCity to solicit offers from other potential buyers for a short period of time following the signing of the merger agreement, the people said on Sunday.
The exact terms of the deal could not be learned. Tesla had previously said it has offered 0.122 to 0.131 of its shares for each SolarCity share.
The sources asked not to be identified because the negotiations are confidential. Tesla and SolarCity declined to comment. — Reuters