Twitter v. Musk; Legal Battle Begins, Who Has The Upper Hand?admin
Elon Musk’s lawyers on Friday filed a motion with the Delaware Chancery Court, marking Twitter’s motion to expedite the proceedings as an “unjustifiable request”. Tesla CEO Elon Musk claims the request for a short trial in the next two months is impossible as the case will be complicated and technical.
Musk requests a trial on or after February 13, 2023, balancing the interests of both parties and the Court.
Elon Musk Files Motion Opposing a Fast-Track Trial
According to the latest filing on July 15, Elon Musk opposes Twitter’s motion to expedite the legal proceedings in September and claims the $44 billion merger case to trial in two months should be rejected.
Twitter filed a lawsuit against Elon Musk on Tuesday, alleging him for violating the deal based on inability to find the exact number of bots or spam accounts on Twitter. Twitter filed a motion to fast-track the trial, asking the court to order Musk to complete the deal at the agreed price of $54.20 per share.
The latest move by Elon Musk indicates a long, major legal battle between the two giants. In fact, Musk has requested the court to delay the trial to February next year based on the complexity and technical aspects of the case. Especially, the dispute over false and spam accounts that determines Twitter’s actual value.
Moreover, he argues Twitter’s request to expedite the trial is based on the termination date of October 24 in the merger agreement. However, the date automatically stays in case either party files litigation.
Interestingly, the debt financing package for the acquisition expires in April 2023. It means the deal might end if the trial fails to complete by the date.
Twitter’s share price rose 4 percent on Friday to $37.74, which is still below the agreed price of $54.20 in the deal. Wall Street experts don’t believe the deal will happen at the agreed price and is subject to renegotiation.
Twitter Recommends Shareholders to Approve the Deal
In an SEC filing on Friday, the Twitter board recommends shareholders approve the merger deal, which is in the best interests of Twitter and its stockholders. Shareholders’ agreement to the deal remains the last step in the deal.
However, it seems shareholders’ responses remain mixed with some restricting the sale to Elon Musk. The shareholders’ approval remains an important factor for the completion of the deal.
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