Global microblogging and social networking platform Twitter has hired New York-based top law firm Wachtell, Lipton, Rosen & Katz to charge legal action against Tesla and SpaceX CEO Mr. Elon Musk on his decision to terminate the $44 billion takeover deal.
The microblogging site will file its lawsuit in Delaware next week. Meanwhile, Mr. Musk is being represented by the law firm Quinn Emanuel Urquhart & Sullivan.
Twitter’s chairman Mr. Bret Taylor said that, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
Last week, Mr. Musk announced the termination of the Twitter purchase deal in a letter sent to Twitter.
Mr. Musk decided to suspend the deal due to multiple breaches of the purchase agreement. The Tesla CEO’s team strongly believes that the proportion of spam and fake accounts is “wildly higher” than 5 percent, the letter said.
“As further described below, Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement,” as per the letter.
“Further, Twitter has not provided information that Mr. Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information sought in Musk’s original requests,” according to the reports.
In April, Mr. Musk reached an acquisition agreement with Twitter at $54.20 per share in a transaction valued at approximately $44 billion.
