Electric car billionaire Elon Musk threatened to back out of his $44 billion ($61 billion) takeover bid on Twitter after he accused the social media giant of refusing to give him information about fakes accounts and spam.
- Elon Musk accused Twitter of ‘resisting and thwarting’ the provision of information about ‘spam bot’ accounts and threatened to tear up its takeover bid
- The Dow Jones Index rose 0.05pc to 32,916, the S&P 500 rose 0.3pc to 4,121 and the Nasdaq rose 0.4pc to 12,061
- As of 7:40 a.m. AEST, the Australian dollar was worth 71.92 US cents, while the futures index, the ASX SPI 200 Index, fell 0.07pc to 7,207.
Mr Musk’s lawyers sent a scathing letter to Twitter’s chief legal officer, Vijaya Gadde, who accused the company of “resisting and thwarting” giving the billionaire information about “spam bot” accounts.
In the letter, a lawyer for Mr. Musk called it a “clear material breach” of the terms of their merger agreement and said he reserved all rights to end his takeover bid.
“Twitter’s latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written documents or verbal explanations, is tantamount to denying Mr. Musk’s requests for data.” , indicates the letter.
Mr Musk said he needed the data to conduct his own analysis of Twitter users because he did not believe in the company’s “lax testing methodologies”.
Twitter said it planned to force the deal to be completed on the agreed terms.
“Twitter has and will continue to cooperatively share information with (Mr.) Musk to complete the transaction pursuant to the terms of the major agreement,” the company said in a statement.
The salvo sparked speculation that Mr Musk’s deal to buy Twitter is falling apart as it’s not the first time the eccentric billionaire has publicly suggested his purchase of Twitter might not happen. .
Dennis Dick of Bright Trading said it was “pretty obvious that Musk has buyer’s remorse and is trying anything to get a price cut, and I think he might pull it off,” said he told Reuters.
Last month, Mr Musk tweeted that the deal was ‘temporarily suspended’ and said he would not follow up on the offer until the company proved that spambots make up less than 5% of its users.
He said he believed spambots made up at least a fifth of the user base.
The billionaire gave up on all due diligence when he agreed to buy Twitter at $54.20 a share in April.
Shares of Twitter fell 1.5% on the news to settle at $39.56.
Wall Street goes up
US stocks ended a volatile session higher, but lingering concerns about rising inflation persisted.
The Dow Jones Index rose 16 points or 0.05% to 32,916, the S&P 500 rose 0.3% to 4,121 and the Nasdaq Composite added 0.4% to 12,061.
Amazon shares rose 2% and were the main driver of the S&P 500.
Apple shares rose 0.5% on major announcements at its annual software developer conference.
In London, the FTSE 100 index rose 1% to 7,608, the CAC 40 in Paris also rose 1% to 4,988 and the DAX in Germany gained 1.3% to 14,654.
All eyes will be on the Reserve Bank this afternoon.
The RBA is urged to raise interest rates again to curb soaring inflation.
As of 7:40 a.m. AEST, the Australian dollar was lower at around 71.92 US cents, while the futures index, the ASX SPI 200 Index, fell 0.07% to 7,207.
Spot gold fell to $1,842.13 an ounce, while Brent crude rose 0.2% to $120 a barrel, after Saudi Arabia raised crude oil prices.
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