Twitter says it will enforce Musk merger agreement as billionaire’s comments cast doubt on his commitment to the deal
- Twitter’s board said it will enforce the US$44 billion agreement with Musk, who could be released if he shows a material change in the company’s situation
- Goldman Sachs and JPMorgan Chase stand to gain US$133 million and US$53 million, respectively for advising Twitter, but only if the deal closes
“We intend to close the transaction and enforce the merger agreement,” the board said Tuesday in a statement to Bloomberg News. Directors voted earlier to unanimously recommended that shareholders approve Musk’s US$54.20-a-share offer.
The proposed takeover includes a US$1 billion break-up fee for each party, which Musk will have to pay if he ends the deal or fails to deliver the acquisition funding as promised. Musk might be released from that requirement if he can show a material change in the company’s situation or the information it has provided.
The board’s statement comes as Musk appears to be manoeuvring to ditch or renegotiate his offer.
On Monday Musk stoked speculation that he could seek to renegotiate the takeover, saying at a tech conference in Miami that a viable deal at a lower price wouldn’t be “out of the question”.