Twitter calls Elon Musk’s third attempt to call off acquisition invalid ahead of key shareholder vote

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Twitter said on Monday that payments to a whistleblower did not breach any of its obligations under the proposed $44 billion acquisition by Elon Muskafter the billionaire sent a third letter in an attempt to cancel the deal.

The social media giant said it intended to enforce the deal and complete the transaction on the price and terms agreed to with Musk, according to a Securities and Exchange Commission filing.

Twitter shareholders will vote Tuesday on whether to approve or reject Musk’s takeover bid.

Twitter’s board has already urged its shareholders to approve the sale of the company to Musk.

On Friday, Musk’s legal team sent a letter to Twitter citing another reason to call off the proposed acquisition. Musk’s team alleged that the multimillion-dollar payment Twitter made to whistleblower Peiter “Mudge” Zatko violated the terms of the agreement.

Zatko alleged last month the social media company’s “extreme and glaring flaws” related to privacy, security and content moderation.

Musk’s latest letter is his third attempt to undo the Twitter deal.

The You’re here The CEO’s legal team first filed a July 8 notice with the SEC for end the acquisition of Twitteralleging that “Twitter failed to meet its contractual obligations”.

A follow-up letter on August 29 cited the allegations made by Zatko as the reason the deal should not go ahead.

In Friday’s letter, Musk’s legal team said an alleged $7.75 million severance package to Twitter’s Zatko is another breach of the takeover agreement.

Twitter said it did not breach any of its obligations.

“As was the case with your July 8, 2022 and August 29, 2022 purported termination notices, the purported termination set forth in your September 9, 2022 letter is invalid and abusive under the Agreement,” the team wrote. legal from the social media giant. to Musk’s representatives.

“Twitter has not breached any of its representations or obligations under the Agreement, and following receipt of Twitter shareholder approval at its special meeting on September 13, 2022, all conditions precedent to the closing of the Fusion will be satisfied.”

The Twitter-Musk saga has become very complicated. Originally proposed musk buy the company in april. After some resistance, Twitter agreed to the deal.

Shortly thereafter, however, Musk started complaining that the number of fake or spam accounts on the social media platform is more than disclosed.

Twitter and Musk will be tried on October 17 in Delaware to resolve Musk’s attempt to reverse his acquisition of the company unless they reach a settlement first.

Musk will be allowed to include the allegations made by Zatko in its countersuit.

The case is complicated by a Tuesday shareholder vote on Twitter that could greenlight the acquisition, but the court case still looms over the deal.

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