Elon Musk’s bid to buy Twitter Inc. is facing more scrutiny in Washington following a report that the US Securities and Exchange Commission is probing whether he broke rules last month when disclosing a large stake in the social media platform.
The Wall Street Journal reported on Wednesday that the SEC is investigating Musk’s submission of a form that investors must file when they accumulate more than 5% of a company. The Federal Trade Commission is also reviewing the bid by the world’s richest person to take Twitter private.
On April 4, Musk disclosed that he acquired more than 9% in the company a week later than regulations allow and by using a filing typically reserved for passive investors. He has since embarked on a highly-public takeover bid.
However, inquiries by the SEC don’t always lead to the regulator taking action.
