Twitter sued Elon Musk over his abandoned US$44 billion takeover bid, accusing the billionaire of having buyer’s remorse after his fortune declined.
Twitter Inc. sued Elon Musk over his abandoned US$44 billion takeover bid, accusing the billionaire of having buyer’s remorse after his fortune declined.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.Musk backed out of the deal to buy the platform on July 8 saying in a regulatory filing that the company has made “misleading representations” over the number of so-called spam bots on the service.
It added that Musk’s unsolicited offer was accompanied by a threat: “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he told the company in an April 13 letter, according to the suit.“Materially breached their obligation to use their reasonable best efforts to complete the merger.”
“Materially breached their obligations to seek Twitter consent to public comments about the deal and refrain from disparaging the company or its representatives in Tweets about the merger.”Musk’s deal with Twitter had included a provision that if it fell apart, the party breaking the agreement would pay a termination fee of US$1 billion, under certain circumstances. Legal experts have debated whether the conflict over spam bots is enough to allow Musk to walk away from the deal.
“This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business,” the lawsuit said. “Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions.”
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