Twitter informed Elon Musk in a letter that his “purported termination” of their merger deal “is invalid and wrongful,” and that his dedication to fund the acquisition stays in impact.
The letter, despatched to Musk’s attorneys on Sunday and made public Monday in a regulatory submitting, is a prelude to the lawsuit that Twitter intends to file towards Musk this week. The letter stated:
Mr. Musk’s and the opposite Musk Events’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations underneath the Settlement. Opposite to the assertions in your letter, Twitter has breached none of its obligations underneath the Settlement, and Twitter has not suffered and isn’t prone to undergo a Firm Materials Opposed Impact. The purported termination is invalid for the impartial motive that Mr. Musk and the opposite Musk Events have knowingly, deliberately, willfully, and materially breached the Settlement, together with however not restricted to Sections 6.3, 6.8, and 6.10 thereof.
The cited sections embrace varied commitments to shut and finance the deal. Twitter’s letter additional stated the Twitter/Musk “Settlement shouldn’t be terminated, the Financial institution Debt Dedication Letter and the Fairness Dedication Letter stay in impact, and Twitter calls for that Mr. Musk and the opposite Musk Events adjust to their obligations underneath the Settlement.” Within the Fairness Dedication Letter dated April 20, Musk dedicated to supply an estimated $21 billion in fairness financing towards the $44 billion buy.
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