Science

Elon Musk accuses Twitter shareholders of “manipulating the market”

Sotskaya exchange

By income

Published on 05/26/2022 at 23:13 – Updated on 05/26/2022 at 23:04

Twitter shareholders have filed a complaint against Elon Musk, whom they accuse of manipulating the market in order to save money when taking over the social network.

According to documents filed in a California court on Wednesday, the plaintiffs accuse the Tesla boss of delaying when he said he had acquired a stake in Twitter, which is a legal obligation that exceeds certain thresholds.

Thus, the multi-billionaire saved about $156 million, they estimate, because if he had informed the market in time, he would have paid more for some shares.

By postponing the amount of his share on Twitter, Musk manipulated the market and bought shares at an artificially low price.»Investors’ lawyers, led by William Heresniak, assure.

Since the beginning of April, the platform’s value in the stock market has fluctuated according to official information and tweets from the capricious multibillionaire.

When he announced on April 4 that he had reached over 9% of Twitter’s equity, activity soared 25%.

He was to enter the board of directors (CA) and then finally not, before announcing his intention to buy the San Francisco-based group for a total of $44 billion.

CA opposed this before relenting. Elon Musk said to pause the operation and then continue.

Musk has made statements, tweeted and taken other actions designed to sow doubt and substantially lower Twitter shares to create some leeway, which he hoped to use to pull out of the deal or renegotiate its price.»asserted in the complaint.

Lawyers note that part of the funding raised by the world’s richest man consisted of loans secured by his Tesla securities, which lost much of their value in the process.

On Wednesday, Elon Musk increased the amount he and his partners contributed directly to the takeover of Twitter to $33.5 billion, reducing the amount borrowed from banks.

The announcement pleased the market: Twitter activity resumed at 5% in the evening, and continued on Thursday.

The multi-hatted entrepreneur (Tesla, SpaceX, Neuralink…) has already been in trouble with the stock market cop for his penchant for tweeting information that affects the prices of his listed companies.

He has over 95 million followers on Twitter and plans to take the social network off the stock market once he owns it.

Le Revenue, with AFP

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