Musk proposes going ahead with deal to buy Twitter: Report
Trading in shares of Twitter was halted after the stock spiked on reports that Elon Musk would proceed with his 44 billion deal to buy the company after months of legal battles
Trading in shares of Twitter was halted after the stock spiked on reports that Elon Musk would proceed with his 44 billion deal to buy the company after months of legal battles.
Musk offered to buy the San Francisco company at 54.20. Shares jumped nearly 13% to 47.95 before trading stopped.
Bloomberg News reported Tuesday that Musk made the proposal in a letter to Twitter, according to people familiar with the case who were not identified.
Musk has been trying to back out of the deal for several months after signing on to buy the social media platform in April.
Shareholders have already approved the sale.
Musk claimed that Twitter under-counted the number of fake accounts on its platform, and Twitter sued when Musk announced the deal was off.
"We write to notify you that the Musk Parties intend to proceed to closing of the transaction," read a copy of the letter to Twitter filed with the SEC.
Twitter confirmed to AFP that it received the letter from Musk, and said it intends to close the buyout deal at the agreed-on price of $54.20 per share.
Neither Twitter nor lawyers for Musk responded to messages seeking comment on Tuesday.
The trial seeking to compel Musk to buy Twitter is set to start in Delaware Chancery Court on Oct. 17.
Musk's argument for walking away from the deal has largely rested on the allegation that Twitter misrepresented how it measures the magnitude of spam bot accounts that are useless to advertisers.
But most legal experts believed he faced an uphill battle in convincing Chancellor Kathaleen St. Jude McCormick, the court's head judge, that something changed since the April merger agreement that justifies terminating the deal.