Twitter strikes Musk again, saying no contractual breach has been breached – SABC News

Twitter Inc fired back at Elon Musk on Monday, accusing the world’s richest man of “knowingly” violating. agreement on the purchase of the social media companydays after the head of Tesla Inc. tried to withdraw from the $ 44 billion deal.

In a letter sent to Musk, dated Sunday and sent to regulators on Monday, Twitter said it had not breached its obligations under the merger agreement as Musk indicated on Friday before trying to end the deal.

“Twitter requires Mr. Musk and other Musk parties to fulfill their obligations under the agreement, including their obligations to do their utmost to fulfill and carry out the transactions provided for in the agreement,” the letter said.

The company has planned to sue Musk to force him to sign the deal, a threat he laughed at on Monday when he posted a series of tweets mocking Twitter and threatening to enforce the deal in court. Twitter plans to sue in Delaware earlier this week, people familiar with the matter told Reuters.

Twitter said in the letter that the merger agreement remained in force, adding that it would take steps to terminate the agreement.

Shares of Twitter fell 11.3% to $ 32.65, a 40% discount on Musk’s $ 54.20 offer and the largest daily percentage drop in more than 14 months. They picked up less than 1% in longer trades.

Shares in Tesla fell by almost 7%.

Traders who sold shares falling on Twitter made a profit of 148 million US dollars on Monday, but a short bet against Tesla led to 1.3 billion dollars in market profit, according to S3 Partners.

“The board of Twitter must consider the potential harm to its employees and shareholders as a result of any further internal data revealed in the lawsuits,” said Mark Zgutowicz, a reference expert.

Francis Pileggi, a corporate lawyer with Lewis Brisbois in Delaware, said Musk could put the so-called “bots” of the social media giant at the forefront of the future if he defends the Twitter lawsuit by claiming that the company falsely provided a number of forged invoices.

“I would be surprised if he was banned from receiving this information,” said Pileggi.

Pileggi said that if the number of counterfeit accounts was many times higher than the 5% that Twitter estimated, it could lead to agreements on lower prices for social media.

Lawyers say the 16-year-old social media company has a strong lawsuit against Musk, but could opt for renegotiations or a settlement instead of a lengthy lawsuit.

“We believe that Elon Musk’s intentions to terminate the merger are based more on recent sales in the market than … Twitter ‘failed’ to comply with its requests,” Jefferies analyst Brent Thill wrote in a comment.

“If no agreement is reached, we would not be surprised to see the shares find a floor at $ 23.5.

Twitter strikes Musk again, saying no contractual breach has been breached – SABC News

Source link Twitter strikes Musk again, saying no contractual breach has been breached – SABC News

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