[Reuters]— US electric vehicle (EV) giant Tesla’s CEO Elon Musk warned on the 11th that Twitter, a short-text posting site, will sue Mr. Musk for withdrawing the company’s acquisition. After teasing, Twitter tweeted that it needed to disclose more information about its spam account.
The series of tweets was the first official comment since Mr. Musk announced on the 8th that he would abandon the $ 44 billion acquisition for Twitter’s violation of multiple terms in the deal.
Twitter’s share price fell about 5% from the previous weekend (8th) to $ 34.85 in the pre-market transaction on the 11th. The closing price on the 8th was $ 36.81, 32% below the $ 54.20 that Mr. Musk had proposed to buy. The background was the slump in the stock market and investors’ skepticism about the acquisition.
A person familiar with the matter told Reuters that Twitter would sue Mr. Musk again this week, urging the deal to close.
Although Twitter has a legal advantage, legal experts say, it may opt for renegotiation or reconciliation to avoid long-term court battles.
Jeffreys analyst Brent Till said in an investor note, “Mass’s intention to withdraw the deal is not based on Twitter’s’breach’of Musk’s request, but rather on a recent decline in stock prices. “We think it’s based,” he said. “If the deal doesn’t close, we wouldn’t be surprised if the stock price drops to $ 23.5.”
