Elon Musk and Twitter agreed to delay the billionaire’s long-awaited testimony in the company’s lawsuit aimed at forcing him into a $44 billion buyout, according to people familiar with the matter communicate.
Musk reversed course earlier this week, pledging to go through with the $54.20 per share offer for the social media platform on the original terms. While it could be months before the deal closes, a test set for October 17th will almost certainly be on hold.
Both sides agreed to postpone filing in Austin, Texas while attorneys try to complete procedures to dismiss the lawsuit, according to sources, who declined to be identified to discuss a confidential matter.
Twitter shares fell 1.4 percent to $50.58 on Thursday morning in New York, suggesting the stock market is at least not fully sold after the deal closes.
Meanwhile, banks and other investors are reviewing the original $12.5 billion debt financing package. The lenders are managed by Morgan Stanley. Other investors include Oracle CEO Larry Ellison.
Before restoring his original offer, Mr Musk’s representatives held talks with Twitter about lowering the transaction price, people familiar with the negotiations told Bloomberg News. Mr Musk was targeting a 30 percent price cut and recently considered a 10 percent discount, but discussions failed to result in an agreement. The New York Times reported citing unknown sources.
Delaware Chancery Judge Kathaleen St. J McCormick said Wednesday that she is moving forward with the upcoming trial as neither side has yet asked for the case to be adjourned. In a securities filing earlier this week, Mr Musk offered to go ahead with the deal if Twitter’s lawsuit was shelved.
Twitter did not immediately respond to a request for after-hours comment regarding the delay in filing.
Mr Musk has omitted other filing dates in the case. According to court documents, he canceled a Sept. 28 meeting to answer questions about concerns about Covid-19. He also requested that the testimony be conducted in Texas rather than Delaware.
Mr Musk backed down from his proposed Twitter purchase earlier this year, claiming the company had not been matched with him and investors over the number of bot accounts artificially inflating ad revenue. Twitter countered that the concerns were an excuse for Mr Musk as he began to feel buyer remorse.
In the past, Mr. Musk has become aggressive during pre-trial questioning in other court cases involving his deal-making efforts.
In a statement related to a lawsuit filed by Tesla investors over Mr Musk’s acquisition of utility SolarCity, the billionaire belittled a shareholder advocate who argued the deal was fraught with conflict.
“SolarCity’s bailout was good for the world, tell us?” asked investor attorney Randy Baron in a pretrial inquiry.
https://www.independent.ie/business/world/elon-musks-court-date-delayed-but-twitter-takeover-case-goes-on-as-his-bid-is-revived-42046784.html Elon Musk’s court date is delayed, but the Twitter takeover case continues as his bid is revived