Wachtell, Lipton, Rosen & Katz, the law firm hired by Twitter, has called Elon Musk’s decision to pull out of the acquisition process invalid and wrongful, stating that the social media firm intends to complete the deal.
Musk on Friday, had told Twitter board that he’s terminating the $44 billion deal due to the tech firm’s refusal to provide information relating to the platform’s bot accounts, which the company claimed is below 5%.
The Tesla Chief Executive Officer argued against the number of the spam accounts, disclosing that he doesn’t trust the methodology used to calculate the percentage, and believes the figure is higher.
However, in response to Musk’s claim, Twitter lawyer on Monday, said it had been providing information the billionaire demanded, and plan to continue doing so based on their agreement, until their deal is completed.
Musk had accused Twitter of breaching their contractual agreement, but Rosen & Katz said the company has breached none of its obligations under the Agreement. The lawyers said the deal is still on, and not terminated as the investor previously said.
What Twitter lawyer said about Elon Musk?
In the letter written to Musk’s lawyer, Twitter said, “Mr. Musk and the other Musk Parties’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations under the Agreement.
“Contrary to the assertions in your letter, Twitter has breached none of its obligations under the Agreement, and Twitter has not suffered and is not likely to suffer a Company Material Adverse Effect.” the statement reads.
The firm further argued that, “The purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement, including but not limited to Sections 6.3, 6.8, and 6.10”.
“The Agreement is not terminated, the Bank Debt Commitment Letter and the Equity Commitment Letter remain in effect, and Twitter demands that Mr. Musk and the other Musk Parties comply with their obligations under the Agreement, including their obligations to use their respective reasonable best efforts to consummate and make effective the transactions contemplated by the Agreement (including by taking all steps necessary to obtain a favourable outcome under the United Kingdom’s National Security and Investment Act 2021), the Bank Debt Commitment Letter, and the Equity Commitment Letter.
“As it has done, Twitter will continue to provide information reasonably requested by Mr. Musk under the Agreement and to diligently take all measures required to close the transaction.” the letter reads.