Representatives of Elon Musk and the board of the social network are negotiating the details of the company’s acquisition after the billionaire signaled an intention to proceed with the original deal to take over Twitter for about 44 billion dollars.
Several major US outlets reported on Thursday that the two sides are still hashing out the final terms, amid weeks of disagreements that have created an atmosphere of uncertainty.
Twitter seeks assurances that Musk will adhere to the agreement this time and is considering options such as a judicial review of the closing of the sale or a claim for interest if another delay occurs, according to The New York Times.
Discussions continue as the critical date of October 17 approaches. The lawsuit arising from the companys suit against the entrepreneur who attempted to back out of the deal reached last April is scheduled to begin on that same day.
Recently Musk again proposed buying the company on the original terms. The due process remains pending a final ruling, as confirmed by a Delaware Chancery Court judge presiding over the case.
For now the parties agreed to postpone a meeting planned for today where Twitter lawyers would question the CEO. Tesla meanwhile is preparing for the trial.
10% discount on purchase price
According to The New York Times, Musk decided to pursue the Twitter deal at 54.20 dollars per share. After exploring concessions, he previously considered discounts of up to 30%.
In recent weeks the two sides engaged in talks about a potential price reduction of around 10 percent, but no agreement was reached. The billionaire then indicated a willingness to proceed under the original terms to avoid a court confrontation, a move seen by many experts as a way to prevent a loss in court.
The central question now revolves around financing the transaction, as the wealthiest individual on the planet has consulted several banks to back the purchase. It remains to be seen if those commitments will hold or if lenders will seek different terms. Analysts suggest the battle between Musk and Twitter has already affected the networks public image and market value, with current economic conditions possibly making banks more cautious about providing the needed funds. [The New York Times]