Musk, Twitter are sued by shareholder over $44 billion takeover -Breaking
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© Reuters. Elon Musk is seen at In America: An Anthology of Fashion Gala, Metropolitan Museum of Art in New York City. New York, NY, U.S.A, May 2, 2022. REUTERS/Andrew Kelly(Reuters) – Elon Musk Twitter Inc (NYSE) were sued Friday by a Florida pension trust in order to stop Musk’s planned takeover of social media company, Social Media Company for $44 Billion.
The Orlando Police Pension Fund filed a lawsuit in Delaware Chancery Court claiming that Musk could not complete the takeover by 2025 due to Delaware law. He must have approval from holders of at least two thirds of all shares not owned by him.
Musk, who took a larger than 9% Twitter share in the suit, was declared an “interested stockholder”. The court ordered the delay.
Musk, who also owns Tesla Electric Car Company (NASDAQ:) Inc), is considered the richest person in the world according to Forbes magazine.
Twitter and its Board, which includes Chief Executive Parag Angrawal, are also being sued.
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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