Salem Radio Network News Monday, December 5, 2022

Business

Elon Musk seeks stay of Twitter litigation for Oct. 28 deal close

By Tom Hals

WILMINGTON, Del (Reuters) -Elon Musk requested a judge stay his litigation with Twitter Inc pending the receipt of financing for the $44 billion deal, which he said is expected to close on or around Oct. 28, according to a court filing.

“As a result there is no need for an expedited trial to order defendants to do what they are already doing and this action is now moot,” said the filing.

A five-day trial is scheduled to begin Oct. 17 and Musk was scheduled to be deposed on Thursday, although the parties mutually agreed to postpone his interview, sources told Reuters.

Musk said lawyers representing the debt financing parties have reassured him that they are prepared to honor their obligations, according to the filing.

Proceeding with a trial could drag out payment to Twitter’s shareholders by months, the filing said.

“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’ interests,” the filing said.

After spending months in a high-stakes court battle to get out of his April agreement to buy the social media company, Musk reversed course on Monday and offered to close the deal at the original price of $54.20 per share.

However, Musk’s offer on Monday was conditioned on the receipt of debt financing and on Twitter ending litigation.

(Reporting by Tom Hals in Wilmington, DelawareEditing by Nick Zieminski)

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