SpaceX says potential Tesla merger would need Musk's approval
TSLA•SpaceX said any potential merger with Tesla would require approval from its special committee, board and controlling shareholder Elon Musk. Musk has recused himself from talks because of conflicts of interest, while the potential merger has been valued at $3.5 trillion.
1. Approvals still required
SpaceX said in a regulatory filing that its special committee had made no determination about a potential combination with Tesla. Any deal would require approval from the committee, the board and Musk, SpaceX's controlling shareholder, despite his recusal from discussions.
2. Talks face scrutiny
Musk said on Tuesday that a merger would be “a good idea” and that the companies had formed special committees to discuss a union. His public endorsement reportedly rattled some insiders, who worried it could invite shareholder scrutiny and delay the process by several weeks. A person with direct knowledge of the talks called the disclosure a “mess” and said it could raise questions about representation of Tesla shareholders' interests.
