(Reuters) – US regulators are investigating Elon Musk’s delayed revelation of his significant stake in Twitter Inc. last month, the Wall Street Journal reported on Wednesday, quoting people familiar with the matter.
Musk revealed a 9.2% stake in Twitter to the US Securities and Exchange Commission on April 4, a delay of at least 10 days since exceeding the 5% threshold for revealing a shareholding, the report said.
An investor who passes a 5% stake must submit a form to the SEC within 10 days. It acts as an early sign for stakeholders that a large investor may try to control the company.
The SEC declined to comment on the report, and Tesla Inc.’s chief executive did not immediately respond to Reuters̵7; request for comment.
In addition to the delay, Musk’s report on April 4 also characterized his share as passive, which means that he did not plan to take over Twitter or influence its management or operations.
The next day, however, he was offered a seat on Twitter’s board and a couple of weeks later, the world’s richest man had a deal worth $ 44 billion to buy the social media giant.
Mr Musk, known for his candid Twitter posts, has a long history of skirmishes with the SEC.
Most recently, a US judge criticized him for trying to escape a settlement with the SEC that requires oversight of his Tesla tweets.
In April, the Information reported that the Federal Trade Commission is investigating whether Musk has violated a law that requires companies and individuals to report certain large-scale transactions to antitrust enforcement agencies.