A judge in Delaware on Thursday ordered a halt to Twitter Inc’s lawsuit against Elon Musk before trial, giving the billionaire time to fund the $44 billion (about Rs 3,60,300) takeover of the platform. social media platform. The ruling comes after days of uncertainty over Musk’s intentions and removes the threat that the erratic businessman will have to testify under oath this week over claims that Twitter misled him.
The judge’s order says if Muskrichest person in the world, didn’t complete her 5pm EDT deadline, she’s scheduled to try it out in November.
“We expect to close the trade at $54.20 (approximately Rs 4,500) on October 28th,” Twitter said in a statement. In an earlier court filing, the company urged the judge to reject the proposal, calling Musk’s plan “an invitation to falsify and delay further.”
Musk, CEO of the electric car company Teslawas scheduled to go to trial on October 17, and his removal on Thursday was adjourned by mutual agreement.
Twitter shares, which ended the day down 3.7% at $49.39 (about Rs 4,100), rose 1% after a few hours as investors looked reassured after days of confusion. This week, Musk said he would buy Twitter for $54.20 (about Rs 4,500) per share, which he agreed to in April, provided the deal could secure debt financing.
That marked a reversal for Musk, who spent months litigating with Twitter trying to get out of the deal. He claimed Twitter misrepresented the real number of users on its platform, among other claims.
Musk said in a court filing on Thursday the banks were working together to finance the deal but he needed more time. He argues that a short delay is better than months of trial and appeal.
Twitter said Musk will have to close next week, and a company representative for a loan bank testified on Thursday that Musk has yet to send them a loan notice nor announce that he intends to close. door.
The major banks that have pledged $12.5 billion in funding (about 1,02,300 crore), or about 28% of the deal, could face heavy losses due to the rapid pace of rate hikes already in place. increases market volatility and reduces the desire to finance with leverage.
“There is still some uncertainty based on whether Elon will be able to find the real financing to execute the deal,” said Randy Frederick, executive director of trading and derivatives at the Schwab Center.
Musk has raised $15.4 billion (approximately Rs 1,26,800) by selling Tesla shares this year and is counting on large investors for part of the financing, leading to speculation about whether he whether to sell more shares of the electric vehicle maker or not to finance the deal.
“Funding will eventually go one way or another. That’s just one point of negotiating terms at this stage,” said Robert Gilliland, managing director at Concenture Wealth Management.
© Thomson Reuters 2022