Even as the Elon Musk-Twitter deal hanging fire, it has taken a twist with the billionaire recently sending a text to Twitter CEO Parag Agrawal saying that the social media company’s lawyers are trying to “cause trouble” by asking for financial details on how he is planning to buy the entity, according to reports. The text was reportedly sent on June 28.
“Your lawyers are using these conversations to cause trouble. That needs to stop,” according to a Business Insider’s report quoting Musk’s text. It added that Musk’s text was in response to Twitter’s decision to seek information from Musk on how he’d finance the deal to buy the company.
A few days ago, the social media company also sued Musk after he decided to withdraw the $44-billion takeover deal. According to another report in The Verge, the lawsuit was filed in Delaware’s Court of Chancery on Tuesday, accusing Musk of hypocrisy.
“Twitter brings this action to enjoin Musk from further breaches to compel Musk to fulfil his legal obligations and to compel consummation of the merger upon satisfaction of the few outstanding conditions,” Twitter wrote in the lawsuit. The lawsuit marks the beginning of what could be a protracted legal battle as Twitter seeks to hold Musk to his deal to pay USD 54.20 per share for the company. “Twitter, which is being repped by M&A powerhouse law firm Wachtell, Lipton, Rosen & Katz, alleged that Musk looked for an escape from the deal, which required a “material adverse effect” or breach of contract,” the report added.
Days after Tesla Inc chief sought to back out of the $44 billion deal, Twitter also accused the world’s richest person of “knowingly” breaching an agreement to buy the social media firm.
In a letter sent to Musk recently, Twitter said it had not breached its obligations under the merger agreement as indicated by Musk for looking to end the deal. “Twitter has not suffered and is not likely to suffer a Company Material Adverse Effect,” it added.
Elon Musk in April disclosed that it owns a 9.2 per cent stake in Twitter to become the largest individual shareholder in the company. Subsequently, Twitter CEO Parag Agrawal announces that Elon Musk would join Twitter’s board. However, Elon Musk declined the offer and said that he would instead make the company private.
Later, a section of Twitter shareholders filed a suit against the Tesla CEO in a federal securities class action lawsuit because Musk failed to disclose his 5 per cent stake in Twitter when he was required to do so. On April 14, Elon Musk maked an offer to buy Twitter for $43 billion, or $54.20 per share. After this, Twitter’s board adopted a ‘poison pill’ to protect its share gains.
Musk lined up $46.5 billion in financing for the deal, comprising $21 billion in personal equity and $25.5 billion in loans. Twitter’s board meets to discuss Musk’s offer and accepts his offer to buy shares at $44 billion.
After some days, on May 14, Musk surprisingly said that the Twitter deal is “temporarily on hold” over Twitter’s fake account claim. It sought data on the fake accounts on Twitter. Later, on July 8, Musk in an SEC filing said he was dropping the Twitter deal for not disclosing data. Twitter said it will go the legal way to close the deal.
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