Twitter Says Musk’s Latest Attempt to Cancel Deal ‘Invalid and Wrongful’

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Sep 12 (Reuters) – Twitter Inc (TWTR.N) said on Monday payments to a whistleblower breached any of the terms of its $44 billion takeover by Elon Musk, after the man the world’s richest tried again to cancel the deal.

In a letter to Twitter on Friday, Musk’s lawyers said Twitter’s failure to seek his consent before paying whistleblower Peiter Zatko and his lawyers $7.75 million violated the law. merger agreement, which restricted when Twitter could make such payments.

Twitter’s lawyers responded on Monday, saying Musk’s reasoning for pulling out of the deal was “invalid and faulty.”

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Shares of the social media company fell nearly 2% to $41.37, trading well below Musk’s offer price of $54.20.

The letter to Musk’s attorneys comes ahead of a special meeting on Tuesday where Twitter shareholders will vote on the deal. Read more

Zatko, who was fired by Twitter in January as the company’s chief security officer, last month accused the social media company of falsely claiming it had a strong security plan and made misleading claims about its defenses against hackers and spam accounts.

Musk, who also runs electric car company Tesla Inc (TSLA.O), accused Twitter of misrepresenting the prevalence of spam or bot accounts on its platform and sought to terminate the deal citing those reasons.

The whistleblower will meet with the US Senate Judiciary Committee on September 13 to discuss the allegations.

“With Camp Musk now permitted to include Zatko’s claims in his testimony for Delaware, tomorrow’s hearing will be closely watched from the streets,” Wedbush analysts wrote in a note.

The Twitter lawsuit against Musk is set to begin Oct. 17 in Delaware Chancery Court.

Musk’s attorneys weren’t immediately available for comment.

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Reporting by Nivedita Balu in Bengaluru; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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