Shares of the social network plunged more than six percent in operations after the businessman announced he would not make the purchase effective
Twitter lawyers on Monday described the attempt to pull out of the social network purchase from Tesla founder and CEO Elon Musk as “void”.
Musk’s alleged termination of contract (…) is void and unlawful and constitutes a breach of its obligations under the agreement. Contrary to the allegations in your letter, Twitter has not fulfilled any of its obligations under the agreement,” the social network’s legal team said in a letter shared by the Securities Market Commission (SEC).
Last Friday, Musk told Twitter that he was waiving the social network’s purchase contract after receiving no response from the company when he asked for information about the number of fake accounts found on the platform, as well as the company’s way of dealing with them. control and suspend.
Musk had publicly questioned Twitter’s “bot” numbers for weeks, which many analysts saw as an attempt to lower the tech giant’s share price. Twitter shares plunged more than 6 percent in trading after the announcement, CNN reported.
In mid-May, the tycoon decided to temporarily suspend the purchase of Twitter, which had been agreed at the end of April for some $44,000 million (42,156 million euros), pending details that support the company’s calculation that fake/spam accounts are less than 5% of users.
Then, through a letter sent by Musk’s lawyers to the U.S. Securities Market Commission (SEC) in early June, the billionaire’s legal team deemed Twitter’s position a “significant breach” of its obligations under the merger agreement, which they warned. that Elon Musk “reserves all rights arising therefrom, including its right not to complete the transaction and its right to terminate the merger agreement.”
Musk and Twitter agreed to a €987 million ($1 billion) fine to be paid by any party that pulls out of the deal, but if Twitter plans to enforce the purchase under the agreed terms, it would things can get more complicated for the South African tycoon, according to the aforementioned chain.
Source: La Verdad
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