Image Source: CNBC
In the past two weeks, social media has been awash with the news of Elon Musk making an attempt to take over 100% ownership of microblogging platform Twitter.
In a twist of events, billionaire Elon Musk and Twitter were promptly sued on Friday by a Florida-based pension fund with the hope of stopping Musk from quickly completing his planned $44 billion takeover of the social media company.
In a complaint filed in Delaware Chancery Court, the Orlando Police Pension Fund claims that under Delaware law, Musk cannot complete the takeover until at least 2025. The statement went further to say the only situation where the takeover is permissible is if holders of two-thirds of shares not “owned” by Musk approve.
Musk, who became an “interested stockholder” after taking at least 9% of Twitter’s stake earlier in April, is now expected to navigate a takeover process and a lawsuit that could derail and hamper his chances of a successful takeover.
Earlier this month, Musk purchased 9% of Twitter, making him the social media company’s largest shareholder.However, after tuning down the company’s invitation to sit on the board, Musk, in a series of tweets, announced that he had launched a bid to the tune of $44 billion to buy 100% of Twitter’s stakes. “I made an offer,” he tweeted. The social media space went into a frenzy following Musk’s announcement, and a few days later, he tweeted, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
Musk, who also runs electric car company Tesla and space exploration program Space X, is currently the world’s richest person, according to Forbes magazine.
Twitter and its board, including Chief Executive Parag Agrawal, are also defendants in the lawsuit.
According to the claimant, the lawsuit, which seeks to delay the merger’s closing until at least 2025, also requests that the courts declare that Twitter directors breached their fiduciary duties and recoup legal fees and costs.
There has been no comment regarding the latest lawsuit, as Twitter’s top management has declined to comment, while Elon Musk’s lawyers did not immediately respond to a request for comment.
Also, as controversies continue to trail Musk’s interest in Twitter, following a report that Musk was advised to buy Twitter by former US President Donald Trump, who has been suspended from the social media platform since January 2021, following alleged inciting tweets following his loss during the US Presidential election, Musk has since refuted and distanced himself from the allegations.
Musk announced on Thursday that he had raised $7 billion in funding for the buyout, including from investors such as Larry Ellison, the Qatar state investment fund, and the world’s largest cryptocurrency exchange. According
to a filing with the US Securities and Exchange Commission, Ellison is putting $1 billion into the deal. According to the filing, Saudi Arabian billionaire Prince Alwaleed bin Talal, who had earlier opposed the takeover, consented to roll his $1.9 billion share into the deal.
The document also revealed that Musk’s $12.5 billion margin loan for the acquisition will be cut to $6.25 billion.
The financing news came as CNBC claimed that Musk would serve as the social media platform’s interim CEO for a few months once the deal is completed.
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