Trading of Twitter shares halted over report Elon Musk has bid to buy company

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Elon Musk sent a letter to Twitter offering to complete the deal, which already has shareholder approval, at the original price. Musk offered to buy the company at $54.20 a share.

Musk has been trying to back out of the deal for several months after signing on to

The trial seeking to compel Musk to buy Twitter is set to start in Delaware Chancery Court on Oct. 17. Legal experts generally have said that Twitter had the upper hand in the lawsuit, which Twitter filed in July. Twitter is seeking "specific performance" of the contract with Musk, which means he would have to go through with the purchase at the original price. The contract Musk signed also has a $1 billion breakup fee.

Among the remedies that would favor Twitter is a court order to go through with the deal. The Chancery Court last year forced private equity firm Kohlberg & Co. to go through with its $550 million buyout of DecoPac, a company based in Minnesota that calls itself the world’s largest supplier of cake decorating supplies to professional decorators and bakeries. The case was emblematic of the court’s common — though not uniform — resolution of enforcing contractual obligations on buyers.

 

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