DELAWARE (dpa-AFX) – After his surprising new commitment to buy Twitter Elon Musk cancel the takeover process and have the proceedings suspended. His lawyers submitted a corresponding application to the court on Thursday (local time). However, an agreement between Musk and Twitter is still pending, so that the uncertainty about the conclusion of the deal, which costs around 44 billion dollars, remains. The online network immediately submitted a counter-motion in which it clearly rejected a break in the proceedings. The final decision rests with the responsible judge.
Musk surprisingly confirmed his original offer for Twitter on Tuesday, paving the way for a spectacular turnaround in the tough takeover dispute. The Tesla boss had actually declared the April purchase agreement invalid in July because Twitter had allegedly given false information about the number of fake accounts on its platform. However, the company insisted on compliance with the purchase agreement and went to court. A five-day trial in Delaware is actually scheduled for October 17th.
But Musk has so far kept a back door open to an exit by making the acquisition dependent on financing. Twitter is suspicious and wants to further secure the deal before the legal dispute is settled. Meanwhile, Musk was already on a confrontational course again: “Twitter does not take a yes as an answer,” says the court application. “Amazingly, they insist on going ahead with the proceedings.” Twitter is thus jeopardizing the deal and jeopardizing the interests of its own shareholders.
In the counter-motion, the lawyers for the online platform made it clear that Musk no longer trusted him after months of maneuvering to cancel the purchase. The obstacle isn’t that Twitter won’t take a “yes” for an answer, but that Musk still refuses to stand by his contractual purchase commitments. Musk wants to push through an application that, based on certain reservations, allows him to delay the conclusion of the deal at will and to obtain legal certainty in the event of failure./hbr/DP/he
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