CNBC reports that Elon Musk’s lawyer Mike Ringler wrote a letter to US Securities and Exchange Commission (SEC), in which he informed the Commission that Musk refused to buy Twitter for $44Billion. The social network’s shares fell by approximately 6% against this backdrop.
Ringler stated in the letter that “Twitter failed its obligations under contract”. While Musk requested the information in the contract, Twitter didn’t provide it. This is about fake pages and spam accounts. Twitter claimed that only 5% were fake pages, but Musk believed there were more – around 20%.
“Twitter could not or refused to provide this information.”Ringer stated. “Sometimes Twitter ignored the requests of Mr. Musk, other times it rejected them for reasons that seemed unreasonable, and other times it claimed compliance while providing Mr. Musk incomplete information.”
Bret Taylor, Twitter chairman, stated that the company is committed to closing the deal at agreed price and will pursue legal action to enforce it. ” We are confident that we will win in Delaware court,” Taylor wrote.
These events led to a drop in shares and a decrease in capitalization for Twitter at $ 28 billion. Representatives of the companies want to keep the deal, as Musk’s offer is almost twice that of the company’s capitalization.