Twitter profile page belonging to Elon Musk seen on an Apple iPhone mobile phone.
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Three days after Elon Musk said he wanted to go back to his original deal to buy Twitter for $54.20 a share, Tesla CEO is asking the social media company to end all litigation so to conclude the agreement.
In a filing with the Delaware Court of Chancery on Thursday, Musk’s side said Twitter should drop a scheduled Oct. 17 court date so the necessary funding can be raised to complete the acquisition. here on October 28.
“Twitter won’t take a yes for an answer,” the filing reads. “Amazingly, they insisted on pursuing this litigation, recklessly putting the deal at risk and playing with the interests of their shareholders.”
Musk’s attorneys allege that if Twitter did not agree to quash his lawsuit, the upcoming lawsuit “would prevent the deal from moving forward.”
“Instead of allowing the parties to focus on securing the debt financing necessary to complete the transaction and prepare for a business transition, the parties will instead remain distracted by completing discovery and an unnecessary lawsuit,” wrote the lawyers.
Twitter sued Musk in July in an attempt to force the world’s richest person to honor his purchase agreement, which was signed in April. Musk seemed ready to take the matter to court, as legions of his text messages were released in preliminary documents.
While Twitter shareholders, on the company’s recommendation, agreed to Musk’s purchase price in September, Twitter may now be reluctant to walk away from its lawsuit without being certain that all the funding is available to close the deal. .
Musk’s lawyers said “by far the most likely possibility is that the debt will be funded, in which case the deal will be completed on or around October 28,” although they did not specify how. exactly the debt would be financed. The attorneys added that “counsel for the debt financing parties has advised that each of their clients is prepared to honor their obligations under the Bank Debt Commitment Letter on the terms and subject to the satisfaction of the conditions which are set forth therein”.
Morgan Stanley and Bank of America are among the banks that initially agreed to provide $12.5 billion in debt to Musk. Since then, markets have crashed, especially for risky tech assets.
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