Elon Musk's proposed $44 billion acquisition of Twitter took another surprising turn Friday when the billionaire tweeted the deal was 'temporarily on hold' while he scrutinised the number of fake and spam accounts on the platform. | BISouthAfrica
reported that the option would only be available to Musk under specific circumstances, for example, if a regulator blocked the deal or it ran into problems with third-party financing.
A mergers and acquisitions lawyer familiar with the matter told CNBC that if Musk tries to walk away from the deal just because he feels he overpaid, Twitter could sue him for billions. Wedbush's Ives said Musk could cite concerns about fake accounts as a grounds for walking away while paying the exit fee, but Twitter would probably contest this in court.
Daniel Rubin, a mergers and acquisitions attorney at corporate law firm Dechert, told the FT that Musk could still find ways of forcing Twitter's hand into letting him out of the deal and paying only the $1 billion exit fee."He can always engineer the conditions that will leave Twitter with no meaningful choice but to terminate," Rubin said.
Since Twitter's board accepted Musk's $44 billion offer, the Tesla CEO seems to have been attempting to limit his risk exposure. On May 5, he announced he'd lined
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