The shares of Twitter Inc. fell about 6% in premarket talks on Monday as the legal dispute between Elon Musk and the social media company is expected to take the spotlight after the world’s richest person pulled out of the takeover deal. of US$ 44 billion (R$ 233.5 billion).
Musk, Tesla’s CEO, said on Friday that he was canceling his deal to buy Twitter because the company violated several items in the merger agreement.
Twitter plans to sue later this week and force it to complete the acquisition, people familiar with the matter told Reuters.
In the second, the billionaire made an attack on Twitter, writing on the platform itself that the legal battle will lead the company to disclose in court information about the number of robots and spam accounts. The series of tweets was Musk’s first public response since Friday’s announcement.
Twitter shares closed at $36.81 (BRL 196.93) on Friday and were discounted by 32% from Musk’s $54.20 offer as they were hit. for a double whammy: crash in the broader stock market and investor mistrust of the deal.
“We believe that Elon Musk’s intentions to cancel the merger are based more on the recent market sell-off than … Twitter’s ‘failure’ to fulfill his requests,” Jefferies analyst Brent Thill said in a note. “In the absence of a deal, we wouldn’t be surprised to see the stock hit a floor of $23.50.”
The contract requires Musk to pay Twitter a breakup fee of $1 billion if it cannot complete the deal for reasons such as not getting funding for the acquisition or regulators blocking the deal. The breakup fee would not apply, however, if Musk terminates the deal on his own.
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