Trading in Twitter shares was halted after the stock rose following reports that Elon Musk would press ahead with his $44 billion deal to buy the company after months of legal battles.
Musk offered to buy the San Francisco company for $54.20. Shares jumped nearly 13% to $47.95 before trading halted.
Bloomberg News reported on Tuesday that Musk made the proposal in a letter to Twitter, according to people familiar with the matter who have not been identified.
Musk has been trying to walk away from the deal for several months after signing on to buy the social media platform in April. Shareholders have already approved the sale.
Musk claimed Twitter had underestimated the number of fake accounts on its platform, and Twitter took legal action when Musk announced the deal was off.
Neither Twitter nor Musk’s lawyers responded to messages seeking comment on Tuesday.
The trial to coerce Musk into buying Twitter is set to begin in Delaware Chancery Court on October 17.
Much of Musk’s argument for backing out of the deal rests on the allegation that Twitter has misrepresented how it measures the extent of “spam bot” accounts that are useless to advertisers.
But most legal experts believed he faced an uphill battle to convince Chancellor Kathaleen St. Jude McCormick, the court’s chief justice, that something had changed since the April merger deal that justified the termination. of the agreement.
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