Twitter to sue Elon Musk over termination of takeover bid
Washington/UNI: Twitter will seek legal action against Tesla CEO Elon Musk to force him to continue the merger agreement, said Bret Taylor, Twitter's board chair, Saturday.
The billionaire had on Friday issued a letter via his lawyer to Twitter's chief legal officer announcing an end of the $44 billion Twitter deal.
In April, a deal was reached between Musk and Twitter at $54.20 per share in a transaction valued at approximately $44 billion.
However, he had put the deal on hold in May to review the veracity of Twitter's claims that less than five percent of accounts on the platform are bots or spam.
Musk decided to suspend the deal due to multiple breaches of the purchase agreement, including an alleged inability by Twitter to provide the information needed to complete a comprehensive analysis of spam and fake accounts, according to Sputnik.
The letter stated: "Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement...In short, Twitter has not provided information that Mr. Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information sought in Mr. Musk’s original requests."
In response to the letter, Taylor tweeted: "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."
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