Banks stand to lose at least $500m if they fund Elon Musk’s Twitter takeover

Morgan Stanley and six others committed in April to raise $13bn in debt to finance the purchase - before a deterioration in credit markets

Several large US and international banks would lose $500m or more if they proceed with obligations to fund Elon Musk's $44bn takeover of Twitter, according to a report on Saturday.

The banks, led by Morgan Stanley and six others, including Barclays and Bank of America, committed six months ago to raise $13bn in debt to finance Musk's purchase - an agreement that does not hinge on whether they are able to sell the debt on to investors.