Judge delays Twitter trial, gives Musk time to seal buyout

Oct 6, 2022, 12:57 PM | Updated: Oct 11, 2022, 9:41 am
FILE - Traders gather around a post as Twitter shares resume trading on the floor at the New York S...

FILE - Traders gather around a post as Twitter shares resume trading on the floor at the New York Stock Exchange in New York, on Oct. 4, 2022. Elon Musk’s lawyers said Thursday, Oct. 6, that Twitter is refusing to accept the Tesla billionaire’s renewed $44 billion bid for the social media company and are asking a Delaware court to halt an upcoming trial. (AP Photo/Seth Wenig, File)

(AP Photo/Seth Wenig, File)

A judge has delayed a looming trial between Twitter and Elon Musk, giving the Tesla CEO more time to close his $44 billion deal to buy the company after months spent fighting to get out of it.

Musk had asked to halt the upcoming Delaware court trial, where the Tesla billionaire was expected to fare poorly against Twitter’s lawsuit to force him to complete his April merger agreement. Musk revived the takeover offer on Monday but said he needed time to get the financing in order.

Chancellor Kathaleen St. Jude McCormick, head of the Delaware Chancery Court, said Thursday that Musk and Twitter now have until Oct. 28 to close the deal. A trial originally set for Oct. 17 will happen in November if they don’t, she said.

Twitter had asked McCormick earlier Thursday to proceed with the trial, saying the billionaire refuses to accept the “contractual obligations” of his April agreement to buy the social media company and take it private.

Twitter disputed Musk’s claim that the San Francisco-based company is refusing to accept his renewed bid. Musk told Twitter earlier this week he’s ready to buy the company once again after trying to back out of the deal over the summer, accusing it of refusing to give him information about “spam bot” accounts on the service.

Twitter described Musk’s move to delay the trial as “an invitation to further mischief and delay” after his arguments for terminating the agreement haven’t had merit.

But after the judge’s ruling, Twitter reiterated in a statement that it was ready to close the deal on the share price agreed upon in April: “We look forward to closing the transaction at $54.20 by October 28th,” referring to the price Musk originally offered for each Twitter share.

Brooklyn Law School professor Andrew Jennings said Twitter wants to be certain that the deal will get done and not allow “wiggle room for Musk to walk away again.”

Musk attorneys argued that Twitter was disagreeing with the trial delay “based on the theoretical possibility” of Musk not coming up with the financing, which they called “baseless speculation.”

They said Musk’s financial backers “have indicated that they are prepared to honor their commitments” and are working to close the deal by Oct. 28.

Musk attorney Alex Spiro said in a statement Thursday that “Twitter offered Mr. Musk billions off the transaction price” but Musk “refused because Twitter attempted to put certain self-serving conditions on the deal.” He didn’t elaborate on what those conditions were. Twitter hasn’t described the talks beyond what its attorneys have said in court.

Twitter’s shares fell $1.91, or 3.7%, to close at $49.39 on Thursday. It was the stock’s second day of declines following a surge of more than 22% on Tuesday after Musk made his renewed offer to buy the company.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Groups sue Florida officials over migrant relocation program

MIAMI (AP) — Florida Gov. Ron DeSantis and other officials are being sued in federal court by immigrant rights groups who challenge the constitutionality of the state’s migrant relocation program. The suit was filed Thursday by three groups — Florida Immigrant Coalition, Americans for Immigrant Justice and Hope Community Center — against DeSantis and state […]
18 hours ago
FILE - United Auto Workers members walk in the Labor Day parade in Detroit, Sept. 2, 2019. Members ...
Associated Press

Reform candidates lead in UAW races with 56% of vote counted

DETROIT (AP) — Members of the United Auto Workers union appeared on Thursday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials. Reform-minded candidates, many part of the UAW Members United slate, are leading in multiple key races with just […]
18 hours ago
FILE - Dylan Brandt speaks at a news conference outside the federal courthouse in Little Rock, Ark....
Associated Press

Landmark trial on Arkansas trans youth medical ban wraps up

LITTLE ROCK, Ark. (AP) — The nation’s first trial on a ban on gender-confirming care for children ended Thursday, as Arkansas wrapped up its case defending the prohibition with testimony from an endocrinologist opposed to such treatments for minors. U.S. District Judge Jay Moody, who is considering whether to strike down the law after hearing […]
18 hours ago
President Joe Biden speaks about Russian President Vladimir Putin and the war in Ukraine in respons...
Associated Press

EXPLAINER: US-European differences on climate law persist

WASHINGTON (AP) — President Joe Biden on Thursday tried to allay concerns raised by French President Emmanuel Macron about a clean energy law that benefits electric vehicles and other products made in North America. But the U.S. and Europe remain divided over the landmark law. Hours before hosting Macron at a state dinner. Biden acknowledged […]
18 hours ago
Associated Press

Airbnb urged to require carbon monoxide devices after 3 die

NEW ORLEANS (AP) — Family members of three tourists who died while staying at an Airbnb in Mexico City, apparently of carbon monoxide poisoning, urged the short-term rental company Thursday to require detectors in properties it lists to prevent future tragedies. “Our main goal is to try to get the word out to those planning […]
18 hours ago
Associated Press

Kansas justice chides state law school for ‘closed’ climate

TOPEKA, Kan. (AP) — A member of Kansas’ highest court has resigned in protest from a part-time teaching job at a state law school following what he says was an unsuccessful attempt by the university to pressure students into canceling an event featuring a leader of a group that opposes LGBTQ rights. State Supreme Court […]
18 hours ago

Sponsored Articles

...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Judge delays Twitter trial, gives Musk time to seal buyout