Musk, Twitter are sued by shareholder over $44 billion takeover -Breaking
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© Reuters. Elon Musk attends the In America: An Anthology of Fashion Gala at Metropolitan Museum of Art, New York City. May 2, 2022. REUTERS/Andrew Kelly(Reuters) – Elon Musk Twitter Inc On Friday, a Florida pension fund sued Musk (NYSE:), in an attempt to prevent him from completing the planned $44 billion acquisition of the social media giant.
According to the Orlando Police Pension Fund, Musk can’t complete his takeover before 2025 under Delaware law unless two-thirds shareholders of the shares that he does not own have their approval.
Musk, who took a larger than 9% Twitter share in the suit, was declared an “interested stockholder”. The court ordered delay.
Musk, who also owns Tesla Electric Car Company (NASDAQ:) Inc), is considered the world’s wealthiest person by Forbes magazine.
Twitter, its board and Chief Executive Parag Agawal are all also accused.
Plaintiffs seek to defer the closing of mergers until at most 2025. They also claim that Twitter directors violated their fiduciary duties. Finally, they are seeking legal costs and reimbursement.
Twitter refused to comment. Musk’s lawyer didn’t immediately reply to my request for comment.
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