Twitter sues Elon Musk over $44bn takeover deal

Twitter sues Elon Musk over $44bn takeover deal
July 13, 2022, 8:22 am

Elon Musk/Facebook page

Twitter has taken billionaire Elon Musk to court to try to force him to buy the social media firm, setting up a legal battle with the world's richest man, the BBC reported.

It comes after Mr Musk announced he was walking away from his proposed $44bn (£37bn) takeover of Twitter on Friday (July 8).

On Friday, Mr Musk said he was pulling out of the deal, claiming a lack of information about spam accounts and inaccurate representations amounted to a "material adverse event".

Twitter's share price has fallen more than 8% in the past month, and in May tumbled from highs of more than $50 per share, as Mr Musk questioned the number of fake and spam accounts on Twitter and said the deal was "temporarily on hold".

Now Twitter has asked a Delaware court to order Mr Musk to complete the merger at the agreed $54.20 per Twitter share.

On Friday (July 8), Mr Musk said he was pulling out of the deal, claiming a lack of information about spam accounts and inaccurate representations amounted to a "material adverse event" - Photo. Pixabay

"Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, [Mr] Musk apparently believes that he - unlike every other party subject to Delaware contract law - is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away," said the lawsuit.

The lawsuit went on to accuse Mr Musk of "a long list" of violations of the merger agreement that "have cast a pall over Twitter and its business".

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It said Mr Musk had backed out of the deal because it "no longer serves his personal interests".

The lawsuit mentioned that Mr Musk had backed out of the deal because it "no longer serves his personal interests", adding that after Mr Musk agreed to the deal, the stock market fell, along with Tesla shares.

"The value of Mr Musk's stake in Tesla, the anchor of his personal wealth, has declined by more than $100bn from its November 2021 peak. So [Mr] Musk wants out," it said.

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"Rather than bear the cost of the market downturn, as the merger agreement requires, [Mr] Musk wants to shift it to Twitter's stockholders," it added.

Twitter chairman Bret Taylor tweeted that the microblogging site wanted "to hold Elon Musk accountable to his contractual obligations".

Source: BBC

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