Twitter sues Elon Musk to enforce original merger deal

Musk’s plan to buy Twitter has policymakers around the world worried.

Joe Skipper | Reuters

Twitter filed a lawsuit against Elon Musk in the Delaware Court of Chancery on Tuesday after the billionaire said he was ending his $44 billion deal to buy the company.

Twitter said Musk, having entered into a binding merger agreement, “now refuses to honor his obligations to Twitter and its shareholders because the agreement he signed no longer serves his personal interests.”

Tuesday’s lawsuit marks the start of what could be a long legal battle as Twitter seeks to compel Musk to honor its agreement to pay $54.20 per share for the company, and as Musk seeks to be excluded from the agreement due to spam issues. bots or transaction procedure.

Twitter said Musk’s conduct in his pursuit of the social network was in “bad faith” and accused the Tesla CEO of acting against the deal since “the market started to turn”.

“Having staged a public spectacle to put Twitter on the line, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he – unlike all other parties subject to Delaware contract law – is free to change of opinion, to throw the company, disrupt its operations, destroy shareholder value and walk away,” Twitter wrote in the complaint.

“This repudiation follows a long list of significant contractual violations by Musk that have cast a cloud over Twitter and its business,” Twitter wrote in its lawsuit.

Twitter’s lawsuit was expected after Musk said late last week he no longer plans to buy the social network, citing Twitter bots and saying the company failed to give him the information he needed. need to evaluate the deal.

The lawsuit says Musk’s claims about why he wants to terminate the deal, including the prevalence of bots on the service, are “pretexts.”

Twitter filed a lawsuit to “hold Elon Musk accountable to his contractual obligations,” said Twitter board chairman Bret Taylor. tweeted.

Musk announced his intention to buy Twitter for $54.20 per share in April. The stock was trading at just over $34 per share at Tuesday’s close, more than 37% below Musk’s offer.

“Since signing the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its stock price,” Twitter said in its lawsuit.

This is breaking news. Please check for updates.

Valerie J. Wallis