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The trial in Twitter’s lawsuit against Elon Musk has been postponed by a Delaware judge, allowing the businessman until October 28 to complete his $44 billion takeover of the firm.
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Judge Kathaleen McCormick issued an order on Thursday stating that Musk has until 5 p.m. on October 28 to complete the agreed merger or the trial would be rescheduled for November.
The trial’s postponement, which was supposed to begin on October 17, was a little win for Musk, who had earlier in the day submitted a request asking for extra time to secure finance for the deal.
The judge also placated Twitter, which had been requesting a concrete deadline for the deal’s completion.
In opposition to postponing the trial, Witter had argued that it would be “an invitation to greater mischief and delay.”
Lawyers for Twitter argued in a letter to the court that Musk ‘should be arranging to close on Monday, October 10,’ but is instead refusing to ‘commit to any closing date.’
After attempting to end the agreement over the summer, Musk notified the firm this week that the company is refusing to accept his fresh offer. Twitter refuted this assertion.
Twitter has been requesting a court order to force the merger’s completion and has stated its intention to do so at the $54.20 per share price Musk suggested in an agreement signed in April.
The business had been applying pressure from the impending trial to get Musk to finalize the agreement, and it opposed any delays in its attempts to compel irrefutable guarantees or a formal conclusion.
Twitter’s attorneys accused Musk’s side of being dishonest in their letter to the court for abruptly renewing the previous buyout offer only days before the trial was set to start.
Trust us, they claim; this time, “we mean it,” therefore they ask to avoid being held accountable on the merits, wrote Twitter’s legal team.
Musk had pleaded with the court earlier in the day to give him additional time to come up with the money for the buyout.
The Tesla CEO’s attorneys requested a judge to postpone the planned trial against Twitter awaiting the “completion of the transaction” in a document filed with Delaware’s Court of Chancery on Thursday.
According to the brief, “this action is already moot” and “there is no need for an expedited trial to require defendants to do what they are already doing.”
The billionaire has reportedly been told by attorneys for the banks providing the loan funding that they are ready to uphold their responsibilities, and starting a case may delay payment for months, according to the filing.
The brief states that these cases are unpled and out of the purview of the trial, which is scheduled to start in eleven days.
They claim that it might “impede the deal’s progress.”
Twitter will not accept a yes in the document, according to Musk’s legal team.
Surprisingly, they have insisted on moving forward with this lawsuit, recklessly jeopardizing the deal and gambling with the interests of their stockholders.
In addition to being a huge waste of party and judicial resources, proceeding to trial will make it more difficult for the parties to complete the transaction.
According to Musk’s attorneys, “the litigation can instantly continue based on the then-existing facts and whatever questions remain at the moment” if “a close does not occur.”
Following the news, Twitter’s stock fell more than 3%, trading at $49.44 as of Thursday afternoon at 4pm.
