Musk’s delay in revealing Twitter stock sparks SEC investigation – WSJ

Elon Musk’s Twitter profile can be seen on a smartphone superimposed on printed Twitter logos in this image, taken April 28, 2022. REUTERS/Dado Ruvic/Illustration

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May 11 (Reuters) – U.S. regulators are investigating Elon Musk’s delayed disclosure of his sizeable stake in Twitter Inc (TWTR.N) last month, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

Musk disclosed a 9.2% stake in Twitter to the U.S. Securities and Exchange Commission (SEC) on April 4, a delay of at least 10 days since crossing the 5% shareholding disclosure threshold, it said. report.

An investor who exceeds 5% interest must file a form with the SEC within 10 days. It serves as an early sign to stakeholders that a major investor could be trying to control the company.

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The SEC declined to comment on the report and Tesla Inc’s chief executive (TSLA.O) did not immediately respond to a request from Reuters for comment.

Aside from the delay, Musk’s April 4 filing also characterized his interest as passive, meaning he had no intention of taking over Twitter or influencing its management or operations.

The next day, however, he was offered a position on Twitter’s board and a few weeks later, the world’s richest man had struck a $44 billion deal to buy the social media giant. read more

Musk, known for his candid Twitter posts, has a long history of skirmishes with the SEC.

Recently, a US judge has criticized him for trying to escape a settlement with the SEC that demanded oversight of his Tesla tweets. read more

In April, the Information reported that the Federal Trade Commission is investigating whether Musk has violated a law requiring companies and people to report certain major transactions to antitrust enforcement agencies. read more

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Reporting by Mehnaz Yasmin and Eva Mathews in Bengaluru; Editing by Anil D’Silva and Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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