Chief Executive Officer of Tesla and prospective Twitter owner, Elon Musk has remained resolute that he would not go ahead with the merger agreement with Twitter unless he conducts his own analysis.
The former richest man in the world revealed this via a filing on the United States Security and Exchange Commission (SEC), platform.
According to the publication on SEC, Twitter is committing a “clear material breach” of the social media’s part of the merger agreement.
“Based on Twitter’s behaviour to date, and the company’s latest correspondence, in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement,” it read in part.
This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”
The statement added that “Musk has made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis. The data he has requested is necessary to do so.”
Recall that Mr. Musk had last month said that he is putting the deal on hold over the uncertainty of Twitter’s result on bots.
Twitter had also published prior to this time that the result of its bot analysis reflects only five per cent.
This has, however, generated reactions, especially from Twitter investors who sued the Tesla boss for intentionally stalling the takeover in order to renegotiate the $44bn deal.
Although, in a statement made available to newsmen on Monday, “Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement.” We believe this agreement is in the best interest of all shareholders,” it added. Musk faces a $1 billion fee if he calls off the $44 billion agreement to buy Twitter; a contract breach by Twitter could change that penalty.
