According to Bloomberg News, merger law stalwart heavyweight Wachtell, Lipton, Rosen & Katz. This move comes intending to sue Elon Musk for his move to call off the $44 billion company takeover, as per individuals that are familiar with the matter.
Twitter’s Preparation to Sue Elon Musk
The social media firm wants to file a lawsuit early in the current week, as per people who did not want to be named and preferred to stay anonymous since it is a private matter. By seeking the services of the Wachtell, it can access the services of lawyers like Leo Strine and Bill Savitt, who was the Delaware Chancery Court’s Chancellor, where the case is scheduled to be heard.
While Elon Musk has Quinn Emanuel Urquhart & Sullivan LLP representing him in the lawsuit, this firm had successfully led defense related to a 2019 defamation case and is now representing Elon Musk as a part of a shareholder lawsuit that is already underway over Elon’s unsuccessful attempt to make Tesla Inc, private in 2018.
While a representative of Quinn Emanuel could not be traced for comment, officials for Wachtell Lipton refused to comment. A spokesperson representing Twitter Inc. declined to comment as well.
Delaware is a haven for most corporate homes and serves as one for more than 50% of the US public firms. This also includes Twitter and more than 60% of the companies in the list of Fortune 500 companies.
Prominent Names
Savitt, a Wachtell partner, is among the top and sought-after A-list chancery-related court litigators. He has a clientele that boasts big names like KKR & Co, the financial titan, the Anthem Inc. health insurance, and Sotheby’s, the real estate giant.
The Delaware Chancery Court does not support any effort to withdraw from merger agreements. It is quite possible and likely that Strine’s one of the most important decisions will decide how Musk will go forward with his case in his effort to dump the Twitter takeover.
After the markets shut on Friday, Musk announced that he was walking away from the Twitter deal, his $54.20-a-share offer of buying Twitter, accusing the company of user data misrepresentation. Bret Taylor, the Chairman of Twitter, in turn, responded by saying that he vows to enforce the deal despite a cumbersome court battle.
Following the same, shares of Twitter were found closing at 5.1%, which is lower at $36.81 in official trade. It dropped by another 4.8% to $35 in what is called the post-market activity.
The judges also decide whether break-up fees must be paid. In the case of Twitter Inc. and Elon Musk’s deal, the same fee is $1 billion.
