Judge halts Twitter-Musk case, sets Oct 28 to close deal

A US judge on Thursday suspended litigation in the saga over Elon Musk's proposed $44 billion takeover of Twitter, giving the parties until October 28 to finalize the on-again, off-again megadeal.

Delaware Judge Kathaleen McCormick, ruling on a Musk request to freeze the case that had drawn a biting retort from Twitter, said a trial originally scheduled to begin in 11 days could be rescheduled for next month if a deal is not finalized.

"If the transaction does not close by 5 pm on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates," McCormick said in the order.

The move buys time for a potential reconciliation between two parties that began squabbling as soon as Musk sealed an agreement in April to purchase the influential social media site for $54.20 per share.

With an October 17 trial date on Twitter's breach-of-contract suits against Musk looming, the unpredictable Tesla boss did an about-face on Tuesday, reviving his $44-billion takeover plan on condition the Delaware court halt the lawsuit against him.

Twitter said Tuesday it expects to close the buyout deal at the $54.20 price in a statement that did not address Musk's demands over freezing the litigation.

Legal briefs filed earlier Thursday shed further light on prickly proceedings characterized by mutual distrust.

"There is no need for an expedited trial to order Defendants to do what they are already doing and this action is now moot," said a filing prepared by Musk's attorneys that alluded to his latest offer.

"Yet, Twitter will not take yes for an answer. Astonishingly they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests."

The filing said Twitter had opposed a suspension on the "theoretical possibility" of lack of financing for the transaction, adding that Musk has access to financing to close the deal "on or around October 28."

'Trust us' this time

Twitter refuted those arguments, noting that Musk's side had still not committed to a closing date and calling Musk's latest appeal "an invitation to further mischief and delay," Twitter attorneys said in a filing to the Delaware court.

"'Trust us,' they say, 'we mean it this time,'" Twitter lawyers said in a brief that described Musk as seeking an "indefinite" time frame to close the deal.

"The obstacle to terminating this litigation is not, as Defendants say, that Twitter is unwilling to take yes for an answer. The obstacle is that Defendants still refuse to accept their contractual obligations.