Home » US business news » Twitter says Elon Musk’s latest argument to cancel $44 billion takeover is “invalid and wrongful”
Twitter says Elon Musk’s latest argument to cancel $44 billion takeover is “invalid and wrongful”
https://www.whatjobs.com/news/usa/us-business-news/twitter-says-elon-musks-latest-argument-to-cancel-44-billion-takeover-is-invalid-and-wrongful
By Nithya Bose in US business news, posted September 13, 2022
Twitter's lawyers say Elon Musk's latest attempt to cancel his $44 billion deal to buy the social media giant is invalid, which means the court battle will continue.
Musk's lawyer had noted Twitter's near $7 million pay-off to a whistleblower and claim this means Musk's bid to buy the company should be declared invalid.
But Twitter’s legal team says the latest reason for withdrawal is “invalid and wrongful” and states it hasn’t infringed any of its representations or obligations under the deal.
READ MORE: TWITTER DEMANDS ELON MUSK’S PRIVATE TEXT MESSAGES FOR FIRST SIX MONTHS OF 2022 AS TAKEOVER ROW CONTINUES
They addressed a letter to the Securities and Exchange Commission on Monday, September 12.
The lawyers stated that, except for those that occur at the closure, all of the terms to complete the deal would be fulfilled following shareholder approval on Tuesday.
They wrote: “Twitter intends to enforce the Agreement and close the transaction on the price and terms agreed upon with the Musk Parties.”
Musk’s latest argument to terminate the deal was his third attempt to stop the acquisition.
His lawyers highlighted a payment made to Twitter's former security head, Peiter Zatko, in June after the company fired him for "ineffective leadership and poor performance."
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They argued that it breached the conditions of the April merger agreement regarding the payments the firm is permitted to make to staff.
Twitter struck a confidential settlement with Mr. Zatko.
He accused the firm of failing to secure sensitive user data and deceiving about security risks in relation to its previous employee's lost compensation.
The agreement came after months of wrangling over tens of millions of dollars in potential damages.
Mr. Zatko is slated to appear before the Senate Judiciary Committee on Tuesday, September 13, to address his charges against Twitter's security policies.
Twitter shareholders will be asked to vote on Mr. Musk's proposed acquisition of the social networking giant on the same day.
Source: The Wall Street Journal
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