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Could The Bankers Be Elon’s “Get Out Of Twitter Jail Free” Card?
It’s a tug of war. Elon is pulling one way and the Twiter board the other. My money’s on Twitter, but only a fool would bet against Elon. The question is: what could Elon Musk do to get out of the Twitter deal of his own making? Let me explain…
Tug of War
On the 13th of September, Twitter shareholders will vote to support Elon Musk’s takeover of the business. In a note to shareholders over the weekend (inc me), the Twitter board “unanimously recommended” that shareholders “maximise the value” of their investment in Twitter and accept Musk’s offer of $54.20 a share.
Great…except that Musk doesn’t want to buy Twitter anymore.
He wants out and has told the Twitter board the very same.
Now the matter is heading to court to be resolved. The Delaware Court of Chancery sets much of America’s corporate law. The preliminary hearing a couple of weeks ago set a 5 day hearing for mid-October where both sides will make their case.
Twitter’s case is clear. Musk made all the running. He made the offer. He got the deal he asked for. He made his bed. He has to lie in it.
Musk’s case is not so clear. He’s basically got 3 lines of defence when it comes to proving a “material adverse effect” is…
