US Court Orders Musk to Complete Twitter Acquisition by the 28th... Lawsuit Temporarily Suspended

Resumption of Trial if Acquisition Fails
Key to Securing $13 Billion Funding

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Tesla CEO Elon Musk has reversed his position and decided to proceed with the Twitter acquisition at the originally proposed price, as a court ruling ordered the acquisition to be completed by the 28th.

On the 6th (local time), Bloomberg reported that the Delaware Court of Chancery issued this ruling in relation to Musk's request to the court to order both parties to halt their litigation against Twitter.

Earlier, Musk had signed a contract in April to acquire Twitter for $44 billion (approximately 60 trillion KRW), but he terminated the contract citing Twitter's failure to provide information about fake accounts.

In response, Twitter filed a breach of contract lawsuit in the Delaware court, which postponed the trial scheduled for the 17th and ordered Musk to complete the acquisition by the 28th. Bloomberg analyzed that as tensions between the two sides continued, the Delaware court intervened to give Musk time to finalize the deal.

CNBC reported that Musk's legal team submitted documents to the court stating, "We are currently working with banks to secure acquisition funds but need more time," and "This trial would hinder securing the funds necessary to complete the deal." Musk's side also criticized Twitter, which refused to withdraw the lawsuit, saying, "They recklessly insisted on continuing the litigation, making the deal difficult," and "Twitter is gambling against the interests of its shareholders."

The court plans to resume the trial if Musk does not complete the acquisition by the designated date. Musk's side notified Twitter that the completion of the contract depends on securing $13 billion in acquisition funds. Musk plans to raise a total of $12.5 billion in acquisition funds through loans from major banks including Morgan Stanley, Bank of America, the UK’s Barclays, and Japan’s Mitsubishi UFJ.

Meanwhile, CNBC reported that Twitter remains skeptical of Musk's plans. They are keeping open the possibility that the deal may fall through if the funds are not smoothly secured. Twitter's legal team claimed, "A representative from a major bank informed us that Musk's side has not yet sent a borrowing notice," and "He has also not communicated any intention to terminate the deal."

This content was produced with the assistance of AI translation services.