Musk has asked to halt an upcoming trial in Delaware, where the Tesla billionaire is expected to challenge Twitter’s lawsuit to force him to complete the merger agreement in April. Musk revived the takeover offer in June. Monday but said he needed time to get the finances in order.
Prime Minister Kathaleen St. Jude McCormick, the head of the Delaware Chancellor’s Court, said on Thursday that Musk and Twitter now have until October 28 to close the deal. A trial originally set for October 17 would take place in November if they don’t, she said.
Elon Musk-Twitter Story: Here’s a timeline of what’s happened so far
Twitter asked McCormick earlier on Thursday to proceed with the trial, saying the billionaire refused to accept “contractual obligations” in an April deal to acquire the social media company and keep it in the status quo. privacy level.
Twitter countered Musk’s claim that the San Francisco-based company refused to accept a new bid, which Musk told the company earlier this week after attempting to terminate the deal over the summer. It described Musk’s move to delay the trial as “an invitation to continue mischief and delay” after his arguments for terminating the deal were null and void.
But after the judge’s ruling, Twitter reiterated in a statement that it was ready to close the deal at the agreed stock price in April: “We look forward to closing the transaction at $54.20. la on October 28,” referring to the price Musk initially offered. per share on Twitter.
Brooklyn Law School professor Andrew Jennings said Twitter wants to make sure the deal goes through and doesn’t allow “a space for Musk to walk away again”.
Musk’s lawyers argued that Twitter disagreed with the adjournment “based on the theoretical possibility” of Musk’s failure to provide financing, which they called “baseless speculation.”
They said Musk’s financial backers “have indicated that they are ready to deliver on their commitments” and are working to close the deal by October 28.
Musk’s attorney, Alex Spiro, said in a statement on Thursday that “Twitter offered Mr. Musk billions of dollars off the transaction price” but Musk “rejected because Twitter attempted to offer a number of self-service conditions for the agreement”. He did not elaborate on what those conditions were. Twitter did not describe the negotiations beyond what its lawyers said in court.
Shares of Twitter fell $1.91, or 3.7%, to close at $49.39 on Thursday. It’s the stock’s second day of declines after rising more than 22% on Tuesday after Musk made an offer to buy the company.
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