Deals
Musk Fails to Assure Investors SolarCity Bid Is a Good Deal
- Wall Street questions synergies, whether deal will go through
- Short-term financial risk looms bigger than convergence
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Wall Street is questioning whether Elon Musk’s $2.86 billion plan to combine Tesla Motors Inc. and SolarCity Corp. will go through, even though Musk is trying to persuade investors the proposed marriage is brimming with benefits.
Tesla offered a range of $26.50 to $28.50 a share for the largest U.S. solar provider, about 50 percent less than where the stock was trading six months ago. SolarCity climbed just 3.3 percent to $21.88 at the close in New York, a 23 percent discount to the high end of the buyout offer. Tesla slid 10 percent to $196.66 after falling as much as 14 percent in extended trading Tuesday.