Musk Seeks to Stop Oct. 17 Lawsuits to Close Twitter Deal on Agreed Terms

Musk Seeks to Stop Oct. 17 Lawsuits to Close Twitter Deal on Agreed Terms
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The Twitter profile page belonging to Elon Musk is seen on an Apple iPhone mobile phone.

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three days later Elon Musk said he wanted to go back to his original agreement to buy Twitter for $54.20 per share, the Tesla The CEO is asking the social media company to end all litigation to close the deal.

In a filing with the Delaware Court of Chancery on Thursday, Musk’s side said Twitter should cancel the court date scheduled for October 1. on October 17, so that the necessary financing can be raised to complete the acquisition before October 1. 28

“Twitter will not take yes for an answer,” the presentation says. “Surprisingly, they have insisted on continuing this litigation, recklessly risking the deal and playing into the interests of their shareholders.”

Musk’s lawyers argue that if Twitter doesn’t agree to drop their litigation, the upcoming court trial “will prevent the settlement from moving forward.”

“Instead of allowing the parties to focus on securing the debt financing necessary to consummate the transaction and prepare for a business transition, the parties will remain distracted by completing unnecessary discovery and trial,” the attorneys wrote.

Twitter defendant Musk in July to try to force the world’s richest person to honor his purchase agreement, which was signed in April. Musk seemed ready to take the case to court, as legions of his text messages were released in preliminary presentations.

While the shareholders of Twitter, on the recommendation of the company, agreed At Musk’s purchase price in September, Twitter may now be reluctant to withdraw from its lawsuit without the certainty that all the financing is available to close the deal.

Musk’s lawyers said that “by far the most likely possibility is that the debt is financed, in which case the deal will close around October 28,” though they did not elaborate on exactly how the debt would be financed. The attorneys added that “counsel for the parties to the debt financing has advised that each of his clients is prepared to meet their obligations under the Bank Debt Commitment Letter on the terms and subject to compliance with the conditions established therein”.

Morgan Stanley Y Bank of America they are among the banks that originally agreed to provide $12.5 billion in debt for Musk. Since then, markets have tumbled, particularly for risky tech assets.

Twitter acknowledged earlier this week that it had received the letter from Musk and his lawyers in which voiced his desire to buy Twitter for the original agreed price. Twitter said in response to the letter that “the company’s intent is to close the transaction at $54.20 per share.”

However, Twitter did not say whether it would end its litigation against Musk.

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