August 8, 2022

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Twitter queries banks on Musk’s attempts to undermine $44 bln deal

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WILMINGTON — Twitter Inc is attempting to find evidence that Elon Musk tried to torpedo the financing of his $44 billion takeover deal for the social media company while also looking into his motivation for backing out of the deal, legal experts said.

Twitter sent dozens of civil subpoenas this week to global banks such as units of Morgan Stanley, co-investors in the deal including an affiliate of Brookfield Asset Management Inc, and Musk advisers, according to filings over the past two days in the Delaware Court of Chancery.

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Morgan Stanley declined to comment. Brookfield did not immediately respond to a request for comment. Representatives for Musk and Twitter could not be reached.

The subpoenas seek documents and communications concerning the deal, its financing, any information on “bot,” or fake, Twitter accounts. They also seek information that the recipients may have about potential impact on the deal from changes in the stock price of electric car maker Tesla Inc, of which Musk is chief executive.

The subpoenas are part of Twitter’s lawsuit against Musk seeking to hold him to the deal at the $54.20 per share price he had agreed to. A five-day trial is scheduled to begin Oct. 17 in the Delaware Chancery Court.

Experts said the subpoenas indicate Twitter wants to know what lenders, investors and advisers were saying to each other about Musk’s behavior after he signed the deal in late April.

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“They suspect that behind the scenes he’s been conspiring to blow the whole thing up,” said Minor Myers, a professor at UConn School of Law.

Musk said on July 8 he was backing out of the deal because…

Reuters

2022-08-02 19:37:11

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