Elon Musk Facing 1 Major Hurdle in Bid to Buy Twitter

Elon Musk is currently trying to create a buyout bid for Twitter using other people's money but may have been facing problems raising the money.

The Tesla CEO is worth $270 billion and eyeing to finance his $43 billion bid to acquire Twitter in a deal that raises debt against both the company and possibly his own stock, according to a New York Post report.

Sources noted that some investors seemed to be "skittish" over Musk's pattern of "unpredictable behavior and taste for controversy."

Musk is willing to invest between $10 billion and $15 billion of his own cash to take Twitter private, according to two sources familiar with the situation.

It was an increase from the current 9.1 percent stake in the company he revealed on April 4, which is worth about $3.4 billion.

Sources added that Musk may also be willing to borrow against his current stake if needed, which is a move that could possibly raise several billion additional dollars.

One of the sources said that the co-investors combined shares will have more equity than Musk, but the Tesla tycoon will be the biggest single holder.

Sources noted that about $20 billion will come from co-investors who will finance a tender offer directly to Twitter shareholders.

Elon Musk Buys Twitter

The investment bank working with Musk on the possible deal, Morgan Stanley, has been contacting banks and other possible investors to raise financing for the offer, according to The New York Times report.

Musk is evaluating several packages of debt, which include more senior debt known as preferred debt and a loan against his shares of Tesla, according to two sources.

Private equity firm Apollo Global Management is among the parties eyeing to offer debt financing in a bid for Twitter.

Musk made an unsolicited offer for Twitter last week. He said that he wanted to make it private and wanted people to be able to speak more freely on the platform.

Wall Street greeted his offer with skepticism as the Tesla CEO did not include details on how he would come up with the money for the deal

Twitter responded with Musk's offer by issuing a "poison pill," which would effectively prevent Musk from owning more than 15 percent of Twitter's shares.

Morgan Stanley is expected to provide an update on its deal-making prospects when it reports quarterly earnings on April 28.

Elon Musk's Offer to Twitter

Musk offered to buy the social media platform for $54.20 a share in a filing published last Thursday. He said that the social media company "needs to be transformed privately," according to a CNBC News report.

Musk wrote a letter sent to Twitter Chairman Bret Taylor saying that he invested in Twitter as he believes in its "potential to be the platform for free speech around the globe."

Musk said that Twitter needs to be private as it can "neither thrive nor serve" free speech in its current situation.

He wrote in his letter that his offer is his "best and final offer." He added that he would need to reconsider his position as a shareholder if his offer is not accepted.

This article is owned by Latin Post.

Written by Mary Webber

WATCH: Elon Musk tweet hints at possible tender offer for Twitter - from CNBC Television