Twitter shares fall more than 7% after withdrawing offer to buy Elon Musk


They fell to $34.09, their lowest price since mid-March and well short of the $54.20 considered in Musk’s proposal.

Twitter shares kicked off the session Monday with a more than 7% drop after Elon Musk confirmed this Saturday his intention to end the social network’s purchase contract. For example, shares fell 7.4% to $34.09, their lowest price since mid-March and far from the $54.20 considered in Musk’s proposal.

In fact, the social network’s share price only traded above the bidding threshold, a day after the tycoon confirmed in early April that he had acquired 9.2% of Twitter and not even after he made his bid in mid-April, shares of the company the price being considered in a potential acquisition.

That same Saturday, shortly after Musk informed the U.S. stock market regulator that he was canceling what would become one of the major tech operations of the year, Twitter announced it would take legal action against the South African magnate to satisfy him. the deal. “Twitter’s board of directors is determined to complete the transaction at the price and terms agreed with Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery,” Twitter chairman Bret Taylor said in a message.

At stake is $1,000 million (approximately EUR 987 million), the fine specified in one of the clauses of the agreement if one of the parties withdraws from a takeover for approximately $44,000 million. dollars. (42,156 million euros). However, a legal battle is expected. The technology entrepreneur had made the purchase requirement that the number of fake accounts should be below 5%. And while those responsible for the social network insist that the “bots” (fake users created by artificial intelligence) are around that figure, Musk suspects the actual number would be four times higher.

This is what Musk’s legal advisers claim in a letter to Twitter’s legal department and later published by the US Securities Market Commission (SEC). The attorneys allege that the company “is in material breach of multiple provisions of that agreement.” They mainly refer to the fact that they have not received reliable data on the number of fake accounts and profiles active on the social network and the number of “bots” working through them, but also to the fact that measures were taken without their consent that could affect your business, such as the resignation of two key executives.

Source: La Verdad


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