Billionaire mega-billionaire Elon Musk, after trying for three months to ditch his $44 billion deal to buy Twitter, is now frustrated that Twitter isn’t canceling his lawsuit seeking to force him to close the deal.
Lawyers representing Musk, in a filing Thursday in Delaware Chancery Court, asked for the trial, set to begin October 17, to be suspended while he prepares a deal to terminate debt financing required to swing the acquisition. Musk expects that to happen by October 28, according to a court filing.
In response, Twitter said in a Delaware court filing that it opposed stopping the trial, saying doing so was an “invitation to further harm and delay.”
Musk told Twitter on Monday that he would continue his original offer of $54.20/share for the company, which is valued at $44 billion, after previously claiming on three occasions that he was justified in withdrawing from the agreement because he (alleged) Twitter in breach of the terms of the merger. Twitter’s lawyers argued that Musk simply did not want to pay what he originally promised because his net worth declined as Tesla’s stock price fell.
Musk’s legal team wrote in Thursday’s court filing, “Twitter will not accept a yes answer. Surprisingly, they insisted on moving forward with this litigation, recklessly putting the deal in jeopardy and gambling with the interests of the shareholders. Going through the trial is not only a colossal waste of partisan resources. and judicial, but will undermine the parties’ ability to finalize the deal.”
Twitter argued in a court filing Thursday that the merger “can and should close next week.”
“until [Musk] commit[s] To close as required, Twitter has the right to spend its day in court, to establish and prove its entitlement to a specific performance [Musk’s] The company’s lawyers said the irregularities are to ensure complete comfort in case the shutdown does not occur for any reason.
Twitter said, in response to Musk’s October 3 message, in a statement“We received the letter from Musk’s parties, which they submitted to the Securities and Exchange Commission. The company intends to close the transaction at $54.20 per share.”
According to the latest SEC filing from Musk’s camp, in May his $44 billion bid to Twitter consisted of $27.25 billion in equity financing, $6.25 billion in margin loans, and $10.5 billion in debt financing.
According to Musk’s filing with a Delaware court, “Instead of allowing the parties to shift their focus to securing the debt financing necessary to complete the transaction and prepare for the business transition, the parties will instead be distracted by completing the discovery and unnecessary experiment.”
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