Court Gives Elon Musk, Twitter Deadline To Close Buyout

A court has given Elon Musk and Twitter a deadline to close the company’s buyout.

Eko Hot Blog reports that Chancellor Kathaleen St. Jude McCormick, head of the Delaware Chancery Court, has given Tesla CEO, Elon Musk, and Twitter more time to close the billionaire’s $44 billion deal to buy the social media company.

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In a ruling on Thursday, the judge said Musk and Twitter now have until October 28 to close the deal.

Musk had asked to halt the upcoming Delaware court trial which was set for October 17.

The trial date was set after Twitter sued Musk to force him to complete his April merger agreement. He had abandoned the deal in July.

However, the richest person in the world revived the takeover offer on Monday but said he needed time to get the financing in order.

Twitter rejected Musk’s claim and asked Chancellor McCormick to proceed with the trial, saying the billionaire refuses to accept the “contractual obligations” of his April agreement to buy the social media and take it private.

Twitter disputed Musk’s claim that it is refusing to accept the new bid.

The company said the SpaceX CEO should have been aiming to close the deal by Monday.

“But they aren’t. Instead they refuse to commit to any closing date,” a letter from Twitter lawyer Kevin Shannon said. “They ask for an open-ended out, at the expense of Twitter’s stockholders (who are owed $44 billion plus interest), all the while remaining free to change their minds again or to invent new grounds to avoid the contract.”

Musk attorneys argued that Twitter was disagreeing with the trial delay “based on the theoretical possibility” of Musk not coming up with the financing, which they call “baseless speculation.”

They said Musk’s financial backers “have indicated that they are prepared to honor their commitments” and are working to close the deal by October 28.

FURTHER READING

• Twitter Sues Elon Musk For Pulling Out Of $44bn Takeover Deal

• Elon Musk Subpoenas Jack Dorsey Ahead Of Twitter Court Battle

• Twitter Shareholders Endorse $44bn Musk Deal

The judge said the trial originally set for October 17 will happen in November if the parties do not complete the deal by October 28.

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