Saturday December 02, 2023

Musk offers to close Twitter buyout at original price

October 05, 2022

SAN FRANCISCO: Elon Musk has offered to push through with his buyout of Twitter at the original agreed price, reports said on Tuesday, just weeks before the opening of a bitter court case over his effort to withdraw from the deal.

US media said the world’s richest man had sent a letter to Twitter vowing to honour the takeover price of $54.20 a share -- prompting a surge in the share value of the social network that triggered a suspension of trading.

The latest twist in the long-running buyout saga comes less than two weeks before the start of the high-stakes trial instigated by Twitter in an effort to hold the Tesla chief to the $44 billion deal he signed in April.

Musk was slated to be deposed by Twitter attorneys later this week in preparation for the trial. A serial entrepreneur made rich through his success with Tesla electric cars, Musk began to step back from the Twitter deal soon after it was agreed.

He said in a letter in July that he was canceling the purchase because he was misled by Twitter concerning the number of fake “bot” accounts, allegations rejected by the company. Twitter, meanwhile, has been seeking material or testimony to prove Musk is contriving excuses to walk away because he changed his mind. In July, a Delaware judge agreed to fast-track a trial on Twitter’s allegations, which the company argued is impeding its financial performance.