Wall Street Journal: Elon Musk’s effort to terminate his deal to buy Twitter Inc. sent
shares of the social-media company tumbling, as investors prepare for what is
expected to be a messy courtroom battle. Twitter shares fell 6.7% to $34.35
shortly after the opening bell, putting shares on pace for their biggest drop
in nearly two months. The move follows Mr. Musk’s disclosure to securities
regulators Friday that he is seeking to abandon his $44 billion deal to buy
Twitter and take it private, saying that the company hasn’t provided the
information he needs to assess the prevalence of fake or spam accounts. Twitter
stock is trading about 37% below the $54.20-a-share price at which Mr. Musk
agreed to buy the company in April, marking a stunning turnaround for what has
been considered the buzziest deal of the year. Its shares also are trading
below where they were in early April before Mr. Musk took a surprise 9% stake
in the company, which officially kicked off his takeover attempt (Wall Street Journal). Yahoo: With a $1
billion breakup fee on the line, traders are bracing for more chaos as Twitter
takes Musk to court. Twitter Chairman Bret Taylor said the company will pursue
legal action in order to close the transaction “on the price and terms agreed
by Mr. Musk.” The company has hired merger-law heavyweight Wachtell, Lipton,
Rosen & Katz and aims to file suit early this week, according to people
familiar with the company’s plans, who asked not to be identified because the
matter is private. Twitter has denied Musk’s claims, saying bots are less than
5% of the total users, with executives repeating as recently as Thursday that
their estimates are accurate (Yahoo).
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