Elon Musk officially threatened to back out of his $44 bln buyout of Twitter. Nervous markets make mergers less likely to close. The strength of agreements matters less than the fortitude of directors hashing out deals, writes TheRealLSL:
If a buyer decides that they want to walk away, the seller can go to court and try to force a deal, or renegotiate. If prospects were looking up for the seller, or the market in general, they might take their chances on the merger agreement’s strength. But in a financial world wracked with uncertainty, boards are more likely to display a stiff upper lip, take what they can get and move on.On June 6, Anaplan and Thoma Bravo said they had amended the terms of their previously announced deal.
Separately on June 6, Elon Musk accused Twitter of not providing requested information that would help him conduct his own analysis of fake and spam accounts on the social network, according to a letter to the company by his lawyer Mike Ringler of Skadden, Arps, Slate, Meagher & Flom. He said Twitter’s resistance is a material breach of the company’s obligations under the merger agreement and Musk reserves the right to terminate the merger agreement.
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.Sign up to our investor newsletter to get the latest news and trends in global financial markets.
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