WILMINGTON: A Delaware judge ordered a pause Twitter Inc’s lawsuit against Elon Musk On the eve of the trial to give the billionaire time to fund the $44 billion takeover of the social media platform, according to court filings Thursday.
The lawsuit has been put on hold until October 28 at 5 p.m. EDT to allow Musk, the electric car maker’s chief executive officer, to Tesla Incto finance the deal.
Judge Kathaleen McCormick said if the deal doesn’t close by her deadline, the parties will contact her to schedule a trial in November. Musk is scheduled to go to court on October 17 and the removal on Thursday. His year was adjourned by mutual agreement.
Investors seemed reassured that the order would end days of confusion over the status of the deal.
Twitter shares, which ended the day down 3.7%, were up 2.7% in after-hours trading.
The world’s richest man said this week he would buy Twitter at the price he agreed to in April, $54.20 per share, but the condition of the deal was debt financing.
That marked a reversal for Musk, who spent months in a lawsuit with Twitter trying to get out of the deal. He claimed Twitter misled him about 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, arguing that a short delay was preferable than months spent. through trial and appeal.
Twitter said in a court filing that the judge should reject the proposal and show a lack of trust between the parties, Musk’s plan said that Musk’s plan was “an invitation to further mislead and delay.” .”
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 big banks that have pledged $12.5 billion in funding, or about 28% of the deal, could face huge losses as the rapid pace of rate hikes has caused market volatility market and reduce the appetite for leveraged funding.
“There is still some uncertainty based on whether Elon will be able to find the real funding to make the deal,” he said. Randy FrederickManaging director of trading and derivatives of the Schwab Center.
Musk has raised $15.4 billion by selling Tesla stock this year and is relying on large investors for some of the financing, leading to speculation about whether he will sell more of the company’s stock. produce electric vehicles to finance the deal.
Robert Gilliland, managing director at Centralized asset management.
The lawsuit has been put on hold until October 28 at 5 p.m. EDT to allow Musk, the electric car maker’s chief executive officer, to Tesla Incto finance the deal.
Judge Kathaleen McCormick said if the deal doesn’t close by her deadline, the parties will contact her to schedule a trial in November. Musk is scheduled to go to court on October 17 and the removal on Thursday. His year was adjourned by mutual agreement.
Investors seemed reassured that the order would end days of confusion over the status of the deal.
Twitter shares, which ended the day down 3.7%, were up 2.7% in after-hours trading.
The world’s richest man said this week he would buy Twitter at the price he agreed to in April, $54.20 per share, but the condition of the deal was debt financing.
That marked a reversal for Musk, who spent months in a lawsuit with Twitter trying to get out of the deal. He claimed Twitter misled him about 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, arguing that a short delay was preferable than months spent. through trial and appeal.
Twitter said in a court filing that the judge should reject the proposal and show a lack of trust between the parties, Musk’s plan said that Musk’s plan was “an invitation to further mislead and delay.” .”
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 big banks that have pledged $12.5 billion in funding, or about 28% of the deal, could face huge losses as the rapid pace of rate hikes has caused market volatility market and reduce the appetite for leveraged funding.
“There is still some uncertainty based on whether Elon will be able to find the real funding to make the deal,” he said. Randy FrederickManaging director of trading and derivatives of the Schwab Center.
Musk has raised $15.4 billion by selling Tesla stock this year and is relying on large investors for some of the financing, leading to speculation about whether he will sell more of the company’s stock. produce electric vehicles to finance the deal.
Robert Gilliland, managing director at Centralized asset management.
