Trading of Twitter shares halted over report Elon Musk has bid to buy company
Tesla CEO Elon Musk smiles as he addresses guests at the Offshore Northern Seas 2022 (ONS) meeting in Stavanger, Norway on August 29, 2022. (Photo by CARINA JOHANSEN/NTB/AFP via Getty Images)
NEW YORK – Trading of Twitter shares halted over report that Elon Musk will go ahead with bid to buy company at $54.20 a share.
The news, based on anonymous sources, was first reported by Bloomberg News.
Musk offered to buy the San Francisco company at $54.20. Shares jumped nearly 13% to $47.95 before trading stopped.
According to the report Tuesday, Musk sent a letter to Twitter offering to complete the deal, which already has shareholder approval, at the original price.
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Twitter did not immediately respond to messages for comment on Tuesday.
The trial seeking to compel Musk to buy Twitter is set to start in Delaware Chancery Court on Oct. 17.
Musk’s argument for winning the case — and thus walking away from the deal — has largely rested on his allegation that Twitter misrepresented how it measures the magnitude of “spam bot” accounts that are useless to advertisers.
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But most legal experts believed he faced an uphill battle in convincing Chancellor Kathaleen St. Jude McCormick, the court’s head judge, that something changed since the April merger agreement that justifies terminating the deal.
This story will be updated
