News That Matters

Twitter’s Legal Team Dismissed Elon Musk’s Attempt To Exit An Acquisition Agreement As “Invalid And Wrongful.”

Twitter's Legal Team Dismissed Elon Musk's Attempt To Exit An Acquisition Agreement As "Invalid And Wrongful."

Elon Musk needs to terminate his agreement to purchase Twitter, but Twitter is not budging.

Twitter’s legal representatives hit back in a letter to Musk’s lawyers Sunday, calling the billionaire’s claims “invalid” and demanding that he follow through with the takeover. “Mr. Musk’s and the other Musk Parties’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations under the Agreement,” reads the letter, which was signed William Savit, a lawyer at Wachtell, Rosen, Lipton and Katz.

Musk has publicly expressed concerns that there are a greater number of bots and spam accounts on Twitter than the company has said. In his Friday letter, his lawyer alleged that Twitter has “not complied with its contractual obligations” to provide Musk with sufficient data to evaluate the issue.

In its Monday reaction, the Twitter group said that, “Twitter has penetrated none of its commitments,” and asserted rather that Musk has “purposely, deliberately, persistently, and substantially penetrated the Agreement.” It added that Twitter has and will proceed to “give data sensibly mentioned” by Musk to close the exchange.

“The Agreement isn’t ended, the Bank Debt Commitment Letter and the Equity Commitment Letter stay as a result, and Twitter requests that Mr. Musk and the other Musk Parties follow their commitments under the Agreement,” the letter states.

Except if Musk withdraws or a settlement is reached, the debate shows up practically 100% to wind up in court. Following Musk’s declaration that he needed to leave the arrangement, Twitter load up seat Bret Taylor said in a tweet Friday that the load up is “focused on shutting the exchange based on the cost and conditions settled upon with Mr. Musk and plans to seek after lawful activity to implement the consolidation understanding.”

 

“We are certain we will win in the Delaware Court of Chancery,” Taylor added. It doesn’t create the impression that a proper suit has yet been recorded.

In the interim, Twitter (TWTR) stock failed on the insight about the debate, shutting down over 11% on Monday — almost 40% beneath Musk’s arrangement cost, proposing profound suspicion about the arrangement going through. Numerous experts have proposed that Musk might be attempting to involve the bot issue as a guise to escape an arrangement that seems overrated considering the new market slump. Tesla (TSLA) shares, which Musk is wanting to use to some degree to back the arrangement, have additionally fallen lately.

Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Your email address will not be published.