Twitter shares fell about 5% to $34.85 in premarket trading on Monday
. The stock closed at $36.81 on Friday, a 32% discount to Musk’s $54.20 bid, as it faces a double whammy of a slump in the broader equity market and investor skepticism over the deal.Twitter is planning to sue Musk as early as this week and force him to complete the acquisition, people familiar with the matter told Reuters.
Legal experts say the 16-year-old social media company has a strong legal case against Musk, but could opt for a renegotiation or settlement instead of a long court fight. “We believe that Elon Musk’s intentions to terminate the merger are more based on the recent market sell-off than... Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Thill wrote in a note.The contract calls for Musk to pay Twitter a $1 billion break-up fee if he cannot complete the deal for reasons such as the acquisition financing falling through or regulators blocking the deal. The fee would not be applicable, however, if Musk terminates the deal on his own.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Twitter shares sink, with legal battle ahead as Elon Musk walks awayTwitter shares are on track to erase about US$1.4 billion in market value. Learn more.
Read more »
What's next for Twitter now that Elon Musk wants out?
Read more »
Elon Musk Trying To Back Out Of Deal To Buy Twitter Bot SandwichTwitter is a cesspool of broken souls. But it is a politically and socially important cesspool of broken souls, one which Elon Musk hoped to rescue from the manipulation by legions of woke Twittercrats.
Read more »
Twitter hires U.S. law firm Wachtell to sue Elon Musk after he pulled out of US$44-billion dealTWITTER-M-A-MUSK-LAWSUIT:Twitter hires U.S. law firm Wachtell to sue Musk after pulling out of $44 billion deal - sources
Read more »
Twitter hires U.S. law firm Wachtell to sue Elon Musk after he pulled out of US$44-billion dealTWITTER-M-A-MUSK-LAWSUIT:Twitter hires U.S. law firm Wachtell to sue Musk after pulling out of $44 billion deal - sources
Read more »