Tesla board forms a committee to weigh Musk’s proposal of going private

Tesla board appoints panel to review Musk proposals

Tesla announced on Tuesday that the board of directors has created a three-person special committee to consider taking the all-electric auto company private.

The Saudi fund over almost two years had approached him repeatedly about taking the company private, Musk said, and the latest meeting came after it took a almost 5 percent stake in Tesla.

Goldman Sachs has always been a key adviser to Tesla, but the apparent involvement of Silver Lake, best known as a private-equity firm specializing in tech investments, is striking.

A source familiar with the matter said Silver Lake was offering its assistance to Musk in his exploration of a deal without compensation, and had not been hired as a financial adviser in an official capacity. The agency declined to comment.

More from Bloomberg.com: U.S. Musk expects two-thirds of shares to stay in Tesla. Musk explained in a longer post that he felt confident in going public with his plans after a meeting with Saudi Arabia's public investment fund, who own less than five percent of Tesla.

"During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time", Musk said in his statement.

CEO Elon Musk shocked Wall Street last week when he announced on Twitter that he was considering taking the company private.

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Musk broke silence in a blog post Monday after several days of speculations on how he is going to privatize Tesla following his announcement on Twitter on August 7 that he was considering taking Tesla private at a price of 420 USA dollars per share. Anything is possible from pulling something together to nothing.

Last Tuesday, Musk tweeted that he was "considering taking Tesla private at $420", adding, "Funding secured".

"I also am having discussions with a number of other investors, which is something that I always planned to do since I would like for Tesla to continue to have a broad investor base", he noted.

The special committee is composed of independent directors Brad Buss, Robyn Denholm and Linda Johnson Rice. Tesla bought SolarCity that year.

Buss served as chief financial officer of solar panel installer SolarCity for two years before retiring in 2016. Rice, the first African-American and second woman to join the board, is CEO of Johnson Publishing Company and Chairman Emeritus of EBONY Media Holdings, the parent of EBONY and Jet brands, according to Tesla's website.

Musk also said law firms Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson would be legal advisers on the plan.

One director, Steve Jurvetson, is now on leave of absence following allegations of sexual harassment. The committee has retained the services of a law firm, while Tesla has engaged a separate law firm to act as counsel.

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