A potential deal to take Tesla Inc. private would be by far the largest buyout in history.
Tesla Chief Executive Elon Musk roiled markets on Tuesday, tweeting he was “considering” taking the Silicon Valley car maker private at $420 a share. At that share price, a buyout would cost about $72 billion, excluding debt.
Tesla’s TSLA, +10.99% market value on Tuesday stood at $62 billion; the company has about $10 billion in debt.
The stock ended 11% higher at $379.57 on Tuesday, its best since its Sept. 18 record close of $385.
Tesla on Tuesday posted on its website an email from Musk to employees where he expanded on the idea of taking the company public.
A final decision has not yet been made, but the goal would be “creating the environment for Tesla to operate best,” he wrote.
A Tesla buyout would far outstrip the current record for leveraged buyouts, the $32 billion deal to buy electric utility TXU Corp. in 2007.
That company, renamed Energy Future Holdings Corp., filed for chapter 11 bankruptcy protection in 2014.
Here are the 15 largest leveraged buyouts in history, according to Dealogic:
|Date||Deal Value (in USD, excluding debt)||Company||Buyer|
|Feb. 26, 2007||31.8 billion||TXU Corp.||Kohlberg Kravis Roberts & Co - KKR; Texas Pacific Group|
|Apr. 2, 2007||26.4 billion||First Data Corp.||KKR|
|May 21, 2007||25.7 billion||ALLTEL Corp.||TPG Capital LP; GS Capital Partners LP|
|Feb. 14, 2013||23.6 billion||HJ Heinz Co.||Berkshire Hathaway Inc., 3G Capital Inc.|
|Nov. 20, 2006||22.9 billion||Equity Office Properties||Blackstone Real Estate Partners LP|
|Feb. 5, 2013||21.1 billion||Dell Inc. (84.66%)||Silver Lake Group LLC|
|July 24, 2006||20.1 billion||HCA Inc.||Bain Capital LLC, Thomas H Lee Partners LP|
|July 3, 2007||20.2 billion||Hilton Hotels Corp.||Blackstone Group LP|
|March 30, 2007||18.5 billion||Alliance Boots plc (85.01%)||KKR; AB Acquisitions Ltd.|
|Nov. 16, 2006||17.8 billion||Clear Channel Communications Inc.||Bain Capital LLC, Thomas H Lee Partners LP|
|March 17, 2006||17.8 billion||BAA plc||Grupo Ferrovial SA; Caisse de Depot et Placement du Quebec-CDPQ; GIC Special Investments Pte Ltd; Airport Development & Investment Ltd|
|Sep. 15, 2006||17.6 billion||Freescale Semiconductor Inc.||Blackstone Group; Carlyle Group; Permira Ltd; Texas Pacific Group|
|Oct. 2, 2006||16.8 billion||Harrah’s Entertainment Inc.||Apollo Management LP; Texas Pacific Group|
|May 29, 2006||14.6 billion||Kinder Morgan Inc.||GS Capital Partners; AIG Global Asset Management Holdings Corp.; Carlyle Group; Riverstone Holdings|
|May 29, 2007||14 billion||Archstone-Smith Trust||Tishman Speyer Properties; Lehman Brothers Private Equity|