Elon Musk asked a US judge Thursday to suspend Twitter’s lawsuit over their troubled takeover negotiations after the embattled social media company balked at the Tesla’s chief’s demand to freeze the litigation.
Musk’s request comes two days after the unpredictable billionaire revived his takeover plan, following an earlier withdrawal from the $44-billion transaction that prompted Twitter to file suit in Delaware court. The trial is scheduled to start on October 17.
Reports said Tuesday that Elon Musk offered to push through with his buyout of Twitter at the original agreed price, just weeks before the opening of a bitter court case over his effort to withdraw from the deal.
US media said the world’s richest man had sent a letter to Twitter vowing to honor the takeover price of $54.20 a share — prompting a surge in the share value of the social network that triggered a suspension of trading.
The latest twist in the long-running buyout saga comes less than two weeks before the start of the high-stakes trial instigated by Twitter in an effort to hold the Tesla chief to the $44 billion deal he signed in April.
Musk was slated to be deposed by Twitter attorneys later this week in preparation for the trial.
A serial entrepreneur made rich through his success with Tesla electric cars, Musk began to step back from the Twitter deal soon after it was agreed.
He said in a letter in July that he was canceling the purchase because he was misled by Twitter concerning the number of fake “bot” accounts, allegations rejected by the company.
Twitter, meanwhile, has been seeking material or testimony to prove Musk is contriving excuses to walk away because he changed his mind.
In July, a Delaware judge agreed to fast-track a trial on Twitter’s allegations, which the company argued is impeding its financial performance.
