As a legal battle between Tesla Chief Executive Officer (CEO) Elon Musk and Twitter Inc. is expected to take center stage, shares of Twitter dropped about 6 per cent in pre-market trading on Monday, Reuters reported.
According to the report, Musk, the world’s richest man, walked away from the $44-billion deal on Friday.
The Telsa CEO on Friday said that he was terminating his deal to acquire Twitter because the company had breached multiple provisions of the merger agreement.
Twitter is planning to sue Musk as early as this week and force him to complete the acquisition, according to sources familiar with the matter.
On Monday, Musk took a jab at Twitter’s stance, tweeting that the legal battle would lead to the company disclosing information on bots and spam accounts in court.
Twitter has hired a large New York-based law firm Wachtell, Lipton, Rosen & Katz LLP, news agency ANI reported citing The Hill to sue Elon Musk.
The micro-blogging platform will file its lawsuit in Delaware next week. On the other hand, Musk will be represented by the law firm Quinn Emanuel Urquhart & Sullivan.
On terminating the deal, Twitter’s Chairman Bret Taylor had said, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
In April, Musk cracked a deal to acquire Twitter in a transaction valued at about $44 billion at $54.20 per share