Having trouble verifying this claim

[trentxintong]

I am having trouble verifying this claim here. I skip read the SEC report filed on 8/31/2016 twice and could not find anything supporting this claim. Can someone please help by pointing to me where this is revealed or this is just not real. I do find that SCTY has approached many ~15 suitors and nothing came out.

"Musk has approached a number of institutional investors with a view to getting them to join in the acquisition of SolarCity. However, as many as 15 institutional investors have refused to buy SolarCity or put some money down for its acquisition."

Elon Stands Alone: Investors Dis Tesla Motors (TSLA), SolarCity Merger

 

[Eclectic]

I doubt anyone would be able to verify that claim (that 15 institutions turned down the opportunity to buy Solar City). It's typical in any type of public company sale for a large number of potential bidders to be contacted (a lot more than 15). Some say no without any further discussion, others are given a bit more non-public information in order to determine whether they want to move forward. It's always covered by a non-disclosure and confidentiality agreement.

Someone who has knowledge of the deal (likely someone at Tesla's banker) gave someone in the media an approximate number of institutions that were approached and that's how the factoid became part of a story. Only Solar City and its bankers know the exact number of institutions that were approached and that information will never be disclosed in detail.

 

[trentxintong]

Thanks for the respnose, Eclectic. When i first read this, I thought this is about voting for TSLA+SCTY merger because it has Musk and institutional investors in it. I do not know how others read this.

 

[brian45011]

Thanks for the respnose, Eclectic. When i first read this, I thought this is about voting for TSLA+SCTY merger because it has Musk and institutional investors in it. I do not know how others read this.

"Also on July 6 and 7, 2016, at the direction of the Special Committee, representatives of Lazard contacted representatives of Party A and a number of the potential counterparties discussed previously with the Special Committee to inquire whether such counterparties might be interested in a business combination transaction with SolarCity. Between June 21, 2016 and SolarCity’s ultimate acceptance of Tesla’s offer, representatives of Lazard contacted six potential strategic counterparties (including Parties A and B) about a possible acquisition of SolarCity, one potential financial counterparty (Party C) about a possible acquisition of or equity investment in SolarCity, six additional financial counterparties about a possible equity investment in SolarCity and received unsolicited inquiries from two potential financial counterparties about a possible equity investment in SolarCity."