Musk seeks to stop Oct. 17 trial to close Twitter deal on agreed terms

Elon Musk’s Twitter profile page seen on an Apple iPhone mobile phone.

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Three days after Elon Musk said he wanted to return to his original purchase agreement Twitter for $54.20 a share, the Tesla The CEO is urging the social media company to end all litigation to finalize the deal.

In a filing Thursday with the Delaware Court of Chancery, Musk’s side said Twitter should postpone the October 17 court date to allow the necessary funding to complete the acquisition to be assembled by October 28.

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“Twitter does not take yes for an answer,” the filing reads. “Amazingly, they have insisted on pursuing this litigation, recklessly jeopardizing the deal and gambling with the interests of their shareholders.”

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Musk’s attorneys claim that unless Twitter agrees to set aside its lawsuit, the upcoming court case “would impede the deal’s progression.”

“Rather than allowing the parties to focus on securing the debt financing needed to complete the transaction and preparing for a business transition, the parties will instead remain distracted completing investigations and an unnecessary process,” they wrote the lawyers.

Twitter sued Musk in July to try to force the world’s richest person to honor his purchase deal, which was signed in April. Musk seemed poised to take the case to court, as legions of his text messages have been released in preliminary filings.

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While Twitter shareholders approved Musk’s purchase price in September, on the company’s recommendation, Twitter is now reluctant to walk away from its lawsuit without assurance that all funding to complete the deal is available.

Musk’s attorneys said that “by far the most likely possibility is that the debt will be funded. In that case, the deal will close on or about October 28,” although they didn’t elaborate on exactly how the debt would be funded. The attorneys added that “counsel for the Debt Financing Parties has advised that each of their clients agrees to perform its obligations under the Bank Debt Commitment Letter on the terms and subject to the satisfaction of the terms set out therein.”

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MorganStanley and Bank of America are among the banks that originally agreed to provide Musk with $12.5 billion in debt. Since then, markets have plummeted, particularly for risky tech assets.

Twitter earlier this week confirmed that it had received the letter from Musk and his attorneys, expressing their desire to buy Twitter at the originally agreed price. Twitter said in a reply to the letter that “the Company’s intention is to complete the transaction at $54.20 per share.”

However, Twitter did not say whether it would end its legal battle against Musk.

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