Twitter shares fell nearly 6% in pre-market transactions after a social media company announced plans to sue Tesla’s CEO and said Elon Musk would close the deal.
Twitter Inc shares are pre-market as the legal dispute between Elon Musk and social media companies is expected to become the central stage after the world’s wealthiest move away from the $ 44 billion deal. Trading fell about 6%.
Twitter is planning to sue Mask earlier this week and force him to complete the deal, people familiar with the matter said Monday.
Musk criticized Twitter’s position and tweeted that the court battle would lead to disclosure of information about bots and spam accounts in court.
The series of tweets was Mask’s first public response since its announcement on Friday.
Tesla CEO Musk said Friday that the company would terminate the deal to buy Twitter because it violated several terms of the merger deal.
Slump double whammy
Twitter shares closed at $ 36.81 on Friday and received a 32% discount on Mask’s $ 54.20 bid. This was due to the broader stock market downturn and investor skepticism.
Jeffreys analyst Brent Chill said in a note, “Elon Musk’s intention to end the merger is based on recent market sellouts rather than Twitter’s failure to meet his demands. I believe. “
“Without trading, it wouldn’t be surprising to find a floor with a stock price of $ 23.5.”
The deal requires Musk to pay Twitter a $ 1 billion split fee if the transaction cannot be completed due to reasons such as a failed acquisition fund or a regulatory blockade.
However, if Mask closes the transaction himself, the split fee will not apply.
https://www.trtworld.com/business/twitter-shares-slide-after-musk-s-44b-dollar-deal-falls-apart-58756?utm_source=other&utm_medium=rss Twitter shares slide after Musk’s $ 44 billion deal collapses