Elon Musk says Twitter refuses to sue

Elon Musk’s lawyers filed a lawsuit on Thursday, October 6, with a request to stop the legal proceedings brought against the Tesla boss by Twitter in order to force him to buy the social network.

They allege that the multibillionaire offered on Monday to honor a takeover agreement signed at the end of April, and regret that Twitter is pushing ahead with the process, jeopardizing the deal and playing to shareholder interests, according to the legal document.

Negotiations drag on

Elon Musk tweeted on Monday offering to buy the company as originally planned for $44 billion if he gets the necessary funds and the board of directors drops his claims.

The San Francisco company then took note of this and indicated that it remained committed to completing the deal. But negotiations on a new agreement seem to have stalled, in particular on the issue of debt financing.

First of all, after months of public attacks and scathing remarks from the Tesla boss, the bluebird group is being cautious, Adam Badawi, a professor of commercial law at the University of Berkeley, said Tuesday.

This time, Twitter will require a secure contract. […] He predicted that they would want Musk to advance a significant portion of the total before signing the contract.

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Twitter is refusing to drop the lawsuit due to the theoretical possibility of future funding denials, the Musk clan noted in a statement Thursday.

But this failure did not occur at this stage, they note. On the contrary, creditors have made it clear that they are ready to fulfill their obligations, lawyers say. Twitter’s baseless speculations have been debunked by the banks themselves.

In the spring, Elon Musk offered to buy the platform for $54.20 per share, valuing it at $44 billion. The board of directors of the social network, at first very reluctant, eventually agreed.

But the eccentric entrepreneur unilaterally reverted to that agreement in July, and Twitter launched legal action to force him to honor his obligation. Everything indicated that the platform had a good chance of winning.

For Elon Musk’s lawyers, their client agreed to do what the company asked for. In a document released Thursday, they say they expect the deal to close around October 28th.

Yet Twitter refuses to accept this positive response. Incredibly, (the company) insists on continuing the procedure […]they say.

The trial is scheduled for October 17 in Delaware Specialized Court.

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The parties did not ask for a stay, Judge Catalyn McCormick said in a letter to lawyers on Wednesday. Therefore, I continue to prepare for the trial, ”she added.

The continuation of the process is not only a huge waste of the resources of the parties and the court, but will also undermine the ability of the parties to close the deal, Elon Musk’s lawyers say.

There are currently two possibilities, they argue. Most likely debt funded […] and shareholders get their money much faster than if Twitter won the lawsuit, and won the appeal […] a process that can take months.

The second outcome would be denial of funding, in which case Twitter would have new elements to add to its complaint, the Musk clan argues.

Twitter did not immediately respond to an AFP request.

The board of directors is playing poker at very high stakes, commented analyst Dan Ives of Wedbush Securities, a private equity firm.


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