A US judge on Thursday suspended litigation in the saga over Elon Musk\u2019s proposed $44 billion takeover of Twitter, giving the parties until October 28 to finalise the on-again, off-again megadeal.
\nDelaware Judge Kathaleen McCormick, ruling on a Musk request to freeze the case that had drawn a biting retort from Twitter, said a trial originally scheduled to begin in 11 days could be rescheduled for next month if a deal is not finalised.
\n\u201cIf the transaction does not close by 5pm on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates,\u201d McCormick said in the order.
\nThe move buys time for a potential reconciliation between two parties that began squabbling as soon as Musk sealed an agreement in April to purchase the influential social media site for $54.20 per share.
\nWith an Oct 17 trial date on Twitter\u2019s breach-of-contract suits against Musk looming, the unpredictable Tesla boss did an about-face on Tuesday, reviving his $44bn takeover plan on condition the Delaware court halt the lawsuit against him.
\nTwitter said Tuesday it expects to close the buyout deal at the $54.20 price in a statement that did not address Musk\u2019s demands over freezing the litigation.
\nLegal briefs filed earlier on Thursday shed further light on prickly proceedings characterized by mutual distrust.
\n\u201cThere is no need for an expedited trial to order defendants to do what they are already doing and this action is now moot,\u201d said a filing prepared by Musk\u2019s attorneys that alluded to his latest offer.
\n\u201cYet, Twitter will not take yes for an answer. Astonishingly they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders\u2019 interests.\u201d
\nThe filing said Twitter had opposed a suspension on the \u201ctheoretical possibility\u201d of lack of financing for the transaction, adding that Musk has access to financing to close the deal \u201con or around Oct 28.\u201d
\nTwitter refuted those arguments, noting that Musk\u2019s side had still not committed to a closing date and calling Musk\u2019s latest appeal \u201can invitation to further mischief and delay\u201d, Twitter attorneys said in a filing to the Delaware court.
\n\u201c\u2018Trust us,\u2019 they say, \u2018we mean it this time,\u2019\u201d Twitter lawyers said in a brief that described Musk as seeking an \u201cindefinite\u201d time frame to close the deal.
\n\u201cThe obstacle to terminating this litigation is not, as defendants say, that Twitter is unwilling to take yes for an answer. The obstacle is that defendants still refuse to accept their contractual obligations.
\n\u201cUntil defendants commit to close as required, Twitter is entitled to its day in court to \u2026 prove defendants\u2019 breaches so as to ensure complete relief in the event the closing should for any reason not occur,\u201d they said.
\nAnalysts say the litigation provides leverage to Twitter against the risk of another shift by Musk.
\nUS media have reported that the talks are stuck in part on Musk\u2019s assertion that the deal is contingent on billions of dollars in debt financing by major banks.
\nTwitter \u201cthought they had a deal before\u201d, said Adam Badawi, a law professor at the University of California, Berkeley. \u201cSo to actually accept something from (Musk), it\u2019s going to have to be as ironclad as it possibly can.\u201d
\nBut experts were eyeing the latest court twist as beneficial for Musk.
\n\u201cI think it\u2019s definitely an advantage to him. I mean, he obviously very much wanted to delay this,\u201d Ann Lipton, a law professor at Tulane University, told AFP.
\nBut she noted the advantage would shift to Twitter should Musk not seal the deal by Oct 28.
\n\u201cIf somehow that doesn\u2019t happen, I think that Twitter will have a stronger case that he\u2019s been acting in bad faith all along, which \u2026 justifies whatever equitable remedies would be appropriate for that,\u201d Lipton added.
\nA 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.
\nMusk said in July he was cancelling the purchase because he was misled by Twitter concerning the number of fake \u201cbot\u201d accounts, allegations rejected by the company.
\nTwitter, meanwhile, has sought to prove Musk was contriving excuses to walk away \u2014 simply because he changed his mind.
\nMusk\u2019s potential stewardship of the influential social media site has sparked worry from activists who fear he could open the gates to more abusive and misinformative posts.
\nShares of Twitter, which surged on Tuesday\u2019s news of Musk\u2019s reversal, fell 3.7 per cent to $49.39.<\/p>\n","protected":false},"excerpt":{"rendered":"
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