247 Local Media247 Local Media

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    An Overview of Online Casinos vs Traditional Casinos

    December 8, 2022

    Types of Specialists for Erectile Dysfunction

    October 31, 2022

    When students’ basic needs are met by community schools, learning can flourish

    September 27, 2022
    Facebook Twitter Instagram
    • Home
    Facebook Twitter Instagram
    247 Local Media247 Local Media
    Subscribe
    • Home
    • Automotive
    • Business
    • CBD
    • Crypto
    • Education
    • Entertainment
    • Fashion
    • Finance
    • Health
    • Home Improvement
    • Law \ Legal
    • News
    • Shopping
    • Sports
    • Technology
    • Travel
    • Contact US
    247 Local Media247 Local Media
    Home»Business»Elon Musk to countersue Twitter in attempt to scrap $44B buyout
    Business

    Elon Musk to countersue Twitter in attempt to scrap $44B buyout

    By July 19, 2022No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Elon Musk to countersue Twitter in attempt to scrap B buyout
    Share
    Facebook Twitter LinkedIn Pinterest Email
    Elon Musk to countersue Twitter in attempt to scrap B buyout


    Elon Musk plans to file a counter-lawsuit against Twitter in the coming days — the tech billionaire’s latest attempt to scrap his $44 billion agreement to buy the social-networking giant, a source close to the case told The Post.

    Musk’s lawyers are angling to push a Delaware Court of Chancery judge to grant them more time and power to gather information about bots on Twitter, sources close to the situation said. A protracted legal battle could also potentially drag down the company’s stock, giving Musk more leverage to renegotiate Twitter’s sale price. 

    The news comes less than a week after Twitter sued Musk in Delaware, accusing the mogul of agreeing to buy the site then attempting to “trash the company, disrupt its operations, destroy stockholder value, and walk away.”

    Musk has 20 days from last Tuesday, when Twitter’s suit was filed, to file his own counterclaims.  

    Twitter wants the court to force Musk to purchase Twitter at the agreed-upon price of $54.20 per share, while Musk has argued that he’s allowed to terminate the deal because Twitter has failed to provide adequate information about fake accounts on the site. 

    The first hearing in Twitter’s suit is scheduled for Tuesday, when Delaware Court of Chancery chancellor Kathaleen McCormick is expected to weigh in on Twitter’s request for an expedited trial. 

    Elon Musk
    Elon Musk wants the trial to open no earlier than February 2023.
    REUTERS

    Twitter’s lawyers are pushing for a four-day trial starting in September, while Musk wants the trial to open no earlier than February 2023. 

    “The core dispute over false and spam accounts is fundamental to Twitter’s value,” Musk’s lawyers wrote in a filing on Friday in response to Twitter’s suit. “It is also extremely fact and expert intensive, requiring substantial time for discovery.” 

    Musk’s countersuit would also be heard by McCormick.

    The chancellor is “likely to grant” Twitter’s request for a quick trial, University Of Iowa law corporate and finance law professor Robert T. Miller said in a Monday Wells Fargo investor note obtained by The Post. 

    Delaware Court of Chancery
    Delaware Court of Chancery chancellor Kathaleen McCormick is expected to weigh in on Twitter’s request for an expedited trial on Tuesday.
    Bloomberg via Getty Images

    Musk then filing a countersuit would make sense because “if he doesn’t do that, he’s surrendering,” Miller added in an interview with The Post.

    Miller — who used to work at Wachtell, Lipton, the law firm representing Twitter — doesn’t expect a countersuit to turn the tide in Musk’s favor if he reiterates the same claims about Twitter bots without new evidence. But if Musk embraces new arguments, he could potentially win additional time or discovery power, Miller said.

    “If he comes up with a completely new issue that has not been raised, it could change things,” Miller said.

    Some legal analysts have predicted that the Court of Chancery won’t order Musk to buy Twitter because the deal is so large and because a refusal to comply by Musk could wreak havoc on corporate courts. Miller, however, argues that “all the incentives for Delaware cut in favor of making sure that the big guys get treated the same way as everybody else.”

    Elon Musk
    Twitter wants the court to force Musk to purchase Twitter at $54.20 per share.
    AP

    If the court ultimately rules that Musk must buy Twitter, Miller said the mogul may physically refuse to sign the paperwork to close the acquisition.

    In that case, Delaware has the power to appoint an official called a “special master” to act on his behalf, according to Miller. The court could also hold Musk in contempt, potentially leading to fines or even jail time.

    Ahead of Tuesday’s 90-minute hearing, Chancellor McCormick announced she had tested positive for COVID-19 and would be presiding through Zoom.

    Musk, for his part, was spotted on Sunday drinking a cocktail and swimming on a yacht in Mykonos with Ari Emanuel, according to exclusive photos obtained by Page Six.

    Wells Fargo has a $54.20 price target for Twitter shares, indicating the bank’s analysts believe Twitter will win and the deal will go through at its original price. Twitter shares closed up 1.8% at $38.41 on Monday, reflecting widespread lingering doubts on Wall Street.

    “We believe the market may still be underestimating the Court’s power/inclination
    to enforce [force the deal to close], as well as its broad enforcement powers,” Wells Fargo analysts wrote in Monday’s note.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Beyond Meat, Impossible struggle due to ‘woke’ perception: analysts

    September 26, 2022

    Developer hustles to build ‘Bustle’ in Penn Station area

    September 26, 2022

    Amazon rolls out second Prime Day this year for first time ever

    September 26, 2022
    Add A Comment

    Comments are closed.

    Editors Picks
    Recent Posts
    • An Overview of Online Casinos vs Traditional Casinos
    • Types of Specialists for Erectile Dysfunction
    • When students’ basic needs are met by community schools, learning can flourish
    • Walmart and Target Are Hiring 140,000 Seasonal Workers
    • 7 Ways to Get Affordable Dental Care for Adults and Children
    Archives
    • December 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • September 2021
    Facebook Twitter Instagram Pinterest Vimeo YouTube
    • Home
    © 2022 - 247 Local Media- All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.