The United States Securities and Exchange Commission (SEC) is investigating the disclosure by Elon MuskCEO of Tesla, from his stake in Twitter Inc in early April, according to a letter the agency sent him that month.
In the letter, now made public by the SEC, the regulator asks Musk why it appears that did not submit the required documentation within 10 days of acquisitionand also questions why, when revealing his involvement, he used a form intended for passive investors while openly questioning Twitter’s policies around freedom of expression, the news agency revealed. Reuters.
Specifically, the SEC asked Musk to explain why you chose to initially file a “13G” disclosure formintended for investors who plan to hold their shares passively, rather than “13D”, intended for activist investors seeking to influence company management and policies.
He later modified the presentation. Musk was offered a put in the directory shortly after its initial declaration and has since tried to buy the company outright in a $44 billion deal to take it private.
Musk’s spokespersons did not immediately respond to a request for comment. An SEC spokesman declined to comment.
On the other hand, Twitter said that did not accept the resignation of Egon Durban, an ally of Musk, from his board. Two days earlier, Twitter shareholders blocked his re-election, but the company said he brings “operational knowledge unparalleled in the industry” and would instead reduce his role on the board.
Outside experts had previously said that Musk’s late filing and apparently inadequate paperwork could draw the attention of the SEC, which has clashed with Musk in the past.
The SEC letter is dated the same day Musk disclosed a 9.2% stake in Twitter. the billionaire has been sued by investors who claim he manipulated the price of securities of the company down and profited by not disclosing its investment on time.