We take a break from economic reports this morning — the May CPI report comes out Friday, with expectations of +8.2% year over year price inflation — but see a few events happening among publicly traded companies to start a new week of trading. Pre-market futures are buoyant, though it’s unclear whether these news items are at all responsible.
Tesla
(
TSLA
) and SpaceX CEO Elon Musk appears more and more likely to be headed to court regarding his attempted buyout of social media staple
Twitter
(
TWTR
). This morning, Musk issued at 13D form to state his desire to conduct an independent audit of Twitter’s “spam” accounts, accusing the platform of “obfuscating” in a “clear, material breach of… obligations.”
These sound like fighting words. Musk, who initially had offered $54.20 per share to purchase Twitter outright, now sees the company trading at $38 per share, and to many analysts appears to be looking to get the company at a better price. Musk, it should be pointed out, had waived due diligence in order to make this acquisition a quick one; clearly, this aspect of the deal — should it still come to fruition — has flown the coop.
JetBlue
(
JBLU
) has raised its stakes in its offer for discount airline
Spirit
(
SAVE
). Originally seen as a hostile takeover bid, JetBlue is now sweetening its deal to $31.50 per share in cash to SAVE shareholders, and has upped its reverse-breakup fee from $200 million initially to $350 million this morning. JetBlu is competing with
Frontier Airlines
(
ULCC
) for obtaining Spirit; whomever ultimately gets Spirit will change the structure at the top of the airline economic food chain, bringing either company to top tier in flights and revenues.
Today is the first day
Amazon’s
(
AMZN
) 20-to-1 stock split goes into effect. Shares are up +2.44% in pre-market trading, though its chart os very flat at the moment. Amazon shares have tumbled -12% since the March announcement for this stock split. Year to date, Amazon is -26%.
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