If you have been following the Elon Musk/Twitter saga, then you have not been short of drama. In the latest installment, Musk is trying to avoid a court trial in a suit brought by Twitter. He is now willing to complete the deal. However, a court judge has ruled he must complete the sale by October 28 to be spared a trial.
Musk asked Twitter in a court submission to call off the lawsuit, a condition for closing the deal to purchase the company. He stated his readiness to pay the full $54.2 per share initially agreed upon by both parties.
However, Twitter would not agree to drop the lawsuit, which is scheduled to start on October 17th at the Delaware Court of Chancery.
Musk is now arguing that the lawsuit would distract him from finding the funds required for the purchase. He says, “Twitter will not take yes for an answer. Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.”
Twitter has countered Musk’s claim as being disingenuous. The company filed, ″‘Trust us,’ they say, ‘we mean it this time,’ and so they ask to be relieved from a reckoning on the merits,” Twitter’s side said. “To justify that relief, they propose an order that allows them an indefinite time to close on the basis of a conditional withdrawal of their unlawful notices of termination coupled with an explicit reservation of all ‘claims and defenses in the event a closing does not occur.’“
While Twitter would prefer the deal to be closed by October 10th, Musk and his team have now got a leeway till the 28th. The world’s richest person sold nearly $7 billion worth of stock in case he is forced to see the deal through.
