Elon Musk revived his bid for Twitter Inc. at the original offer price of $54.20 a share, potentially avoiding a courtroom fight over one of the most contentious acquisitions in recent history.
Elon Musk submitted his latest proposal to Twitter on Monday evening, informing the company that he intended to proceed with his original offer. “We write to notify you that the Musk parties intend to proceed to closing of the transaction,” a lawyer for Mr Musk wrote in the letter, according to a regulatory filing. The letter requested that the court battle be paused pending the closing of the deal.
Shares in Twitter closed Monday’s trading session 22% up on the news, and trading has since been halted. Musk and representatives for San Francisco-based Twitter didn’t respond to requests for comment on the letter or whether the company would accept the proposal.
Musk had been trying for months to back out of his contract to acquire Twitter, signed in April. The billionaire began showing signs of buyer’s remorse shortly after the deal was announced, alleging that Twitter had misled him about the size of its user base and the prevalence of automated accounts known as bots.
Elon Musk formally quit the accord in July, and Twitter sued him in Delaware Chancery Court to force him to go forward with the purchase. A trial is scheduled to begin on Oct. 17. The judge in Delaware on Tuesday asked both sides to come back to her with a proposal on how the case can now proceed.
The options include having Twitter seek to dismiss the case or have her continue to retain jurisdiction until the deal closes, said a person familiar with the matter.