Business

Twitter’s law firm accuses Elon Musk of breaching acquisition agreement

Published

2 years ago

July 12, 2022

The law firm hired by Twitter, Wachtell, Lipton, Rosen & Katz, said the acquisition process is still on, ruling out Elon Musk’s withdrawal, despite the former disclosing the investor has breached the agreement.

According to the firm, Twitter board didn’t breach the agreement as claimed by the billionaire, so the termination of the deal by Musk was invalid and wrongful, explaining that it provide the businessman every information requested.

In the statement addressing Musk’s lawyers, Twitter said the decision to pull out is an avoidance of Musk’s obligations under the Agreement, which the Tesla Chief Executive Officer must adhere to.

Ripples Nigeria had previously reported that Musk cancelled the deal on Friday, accusing Twitter of breaching the agreement by not granting him access to the user data base on spam account.

Musk said the bot accounts were more than the less than 5% publicly stated by Twitter Chief Executive Officer, Parag Agrawal. Musk said without having access, he wouldn’t go ahead with the deal, as the figure could impact the company in future.

The law firm explained that the agreement was not terminated, because the Bank Debt Commitment Letter and the Equity Commitment Letter were still effective, “Mr. Musk and the other Musk Parties’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations under the Agreement.

“Contrary to the assertions in your letter, Twitter has breached none of its obligations under the Agreement, and Twitter has not suffered and is not likely to suffer a Company Material Adverse Effect.” Wachtell, Lipton, Rosen & Katz said.

Part of the statement reads that, “The purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement, including but not limited to Sections 6.3, 6.8, and 6.10”.

“The Agreement is not terminated, the Bank Debt Commitment Letter and the Equity Commitment Letter remain in effect, and Twitter demands that Mr. Musk and the other Musk Parties comply with their obligations under the Agreement, including their obligations to use their respective reasonable best efforts to consummate and make effective the transactions contemplated by the Agreement (including by taking all steps necessary to obtain a favourable outcome under the United Kingdom’s National Security and Investment Act 2021), the Bank Debt Commitment Letter, and the Equity Commitment Letter.

“As it has done, Twitter will continue to provide information reasonably requested by Mr. Musk under the Agreement and to diligently take all measures required to close the transaction”, the law firm stated.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now