Twitter Accepts October Trials, Demands Commitment for Trial Closure
- Twitter has no objection to Musks' takeover hearing in October.
- Wants commitment on trial closure to conclude in 5 days.
- Twitter to hold voting on takeover proposal by Musk.
In a recent developement Twitter has accepted to a proposal by Elon Musk to start on October 17 a trial over Musk’s bid to walk away from his $44 billion take over. However, the filing by microblogging site has mentioned that it wants a commitment of trial closure within 5 days.
Musk stated that he needs time to complete a thorough investigation of his claims of Twitter’s misinterpresentation of fake accounts which is breach in terms laid for the deal. It said in its court filing that Musk has offered no assurance a trial would be completed in five days, as ordered by the judge, Kathaleen McCormick of the Delaware Court of Chancery.
It should be noted that Musk had originally sought a February trial, but on Tuesday proposed an October 17 trial after a judge ruled the proceeding was to start in three months.
Twitter has called the fake accounts a distraction and pushed for the trial to hold Musk to the deal to start as soon as possible, arguing that delay damages its business. Twitter sought that commitment because it believes Musk’s objective remains to delay trial, render impracticable the Court’s expedition order, and thus avoid adjudication of his contractual obligations- the filling read.
On Tuesday Twitter said it would hold a shareholder meeting on September 13 to vote on the social media company’s proposed $44 billion takeover offer by Tesla chief Elon Musk. This referendum came after the October hearing was pronounced.
At the meeting, shareholders will be asked to vote on a proposal to approve the compensation that may be payable by Twitter to certain executive officers in connection with the buyout, Twitter said in a filing.