Twitter calls Elon Musk’s third attempt to scrap acquisition invalid ahead of key shareholder vote

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Twitter said on Monday payments to a whistleblower did not breach any of its obligations under Elon Musk’s proposed $44 billion acquisition, after the billionaire sent a third letter attempting to cancel the agreement.

The social media giant said it intended to enforce the deal and complete the transaction on the price and terms agreed to with Musk, according to a Securities and Exchange Commission filing.

Twitter shareholders will vote Tuesday on whether to approve or reject Musk’s takeover bid.

Twitter’s board has previously urged its shareholders to approve the sale of the company to Musk.

On Friday, Musk’s legal team sent a letter to Twitter citing another reason to call off the proposed acquisition. Musk’s team alleged that the multimillion-dollar payment Twitter made to whistleblower Peiter “Mudge” Zatko violated the terms of the agreement.

Last month, Zatko alleged the social media company’s “extreme and egregious deficiencies” in privacy, security and content moderation.

Musk’s latest letter is his third attempt to undo the Twitter deal.

The Tesla CEO’s legal team first filed a July 8 notice with the SEC terminating the Twitter acquisition, alleging that “Twitter failed to meet its contractual obligations.”

An Aug. 29 follow-up letter cited Zatko’s allegations as the reason the deal shouldn’t go ahead.

In Friday’s letter, Musk’s legal team said an alleged $7.75 million severance package to Twitter’s Zatko is another breach of the takeover agreement.

Twitter said it did not breach any of its obligations.

“As was the case with your July 8, 2022 and August 29, 2022 purported termination notices, the purported termination set forth in your September 9, 2022 letter is invalid and abusive under the Agreement,” the team wrote. legal of the social media giant. to Musk’s representatives.

“Twitter has not breached any of its representations or obligations under the Agreement, and following receipt of Twitter shareholder approval at its special meeting on September 13, 2022, all conditions precedent to the closing of the Fusion will be satisfied.”

The Twitter-Musk saga has become very complicated. Musk originally offered to buy the company in April. After some resistance, Twitter agreed to the deal.

Soon after, however, Musk began complaining that the number of fake or spam accounts on the social media platform was higher than disclosed.

Twitter and Musk will go on trial Oct. 17 in Delaware to resolve Musk’s attempt to reverse his acquisition of the company unless they reach a settlement first.

Musk will be allowed to include Zatko’s allegations in his countersuit.

The case is complicated by a Tuesday shareholder vote on Twitter that could greenlight the acquisition, but the court case still looms over the deal.


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