Mr. Musk, the company’s largest shareholder with a roughly 10% stake, hadn’t voted his shares one way or another as of Monday afternoon and was unlikely to given that he has alleged that Twitter breached the merger agreement, some of the people said. The agreement requires Mr. Musk to vote his shares in favor of the deal, though his support isn’t crucial if enough other investors back it.
Other big Twitter shareholders, including index-fund managers who together control roughly 20% of Twitter’s stock, are poised to support the deal, some of the people said.
In July, Mr. Musk unveiled a plan to bail out on the deal over claims Twitter misrepresented the number of spam accounts on its platform. Twitter then sued him to follow through, arguing that Mr. Musk had a change of heart as the market soured and is still under obligation to complete the deal. The two sides are set to face off in the Delaware Court of Chancery beginning Oct. 17.
While legal experts have so far tended to view Twitter’s case as stronger, there remain significant questions. They include whether a recent whistleblower complaint about Twitter could bolster Mr. Musk’s case and whether a judge would force a reluctant buyer to follow through with such a large deal, especially for a company with Twitter’s significance to society. The so-called specific-performance remedy that Twitter is seeking hasn’t been tested on such a scale.
Read more at Wall Street Journal
The relationship between Twitter and Elon Musk have dominated business headlines for much of the year. Now, it looks as though there might be a settlement between the two powerhouses. Twitter is a prominent business in our culture. Mr. Musk is a prominent man in our world. Could this be an unhappy “marriage?” Only time – and the pocketbooks – will tell.
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