The terms of the deal require Elon Musk to pay a breakup fee of $1bn (£830m) if he doesn’t complete the transaction, but it appears Twitter’s board of directors are not planning to accept the payment and will instead take legal action. Elon Musk has pulled out of a deal to Takeover deal Twitter for $44bn (£36.5bn). In a statement provided to the US Securities and Exchange Commission, Musk’s representatives said Twitter violated the terms of a settlement and “appears to have made false and misleading representations.”
They said Twitter also failed to provide the data and information requested by Musk to allow him to “make an independent assessment of the prevalence of fake or spam accounts” on the social media platform. “Twitter has sometimes ignored Mr. Musk’s requests, sometimes rejected them for reasons that appear unwarranted, and sometimes claimed to comply while providing Mr. Musk with incomplete or unusable information,” the statement continues. As a result of Musk’s decision, Twitter shares fell 7% in extended trading, well below the $54.20 he had offered to pay for the company in April. The terms of the deal Takeover deal require Musk to pay a breakup fee of $1bn (£830m) if he doesn’t complete the transaction. However, it appears that Twitter’s board of directors does not plan to accept the payment and will instead take legal action.
Twitter confident of taking legal action. Twitter Chairman Bret Taylor tweeted that the company is “committed to closing 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 Takeover deal in the Delaware Court of Chancery,” he added.