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SEC demands more information from Elon Musk on Twitter deal


(RTTNews) – The US securities regulator has requested more information about billionaire Elon Musk’s tweets related to his proposed $44 billion acquisition of Twitter.

The filing by Musk’s attorneys at Skadden Arps Slate Meagher & Flom LLP was in response to last month’s letter from the Securities and Exchange Commission. In the June 2 letter from the SEC, Musk was asked about his May 17 tweet about potential spam and fake Twitter accounts, in which he said “the deal can’t move forward.”

According to the SEC, the term “cannot” suggests that Musk is exercising a legal right under the terms of the agreement to suspend completion of the acquisition or does not intend to complete the acquisition. The regulator asked to explain the term, as to why this statement was not a material change that should have been amended in its public record to reflect its intention regarding the agreement.

The agency requested a written analysis of Musk’s current plans or proposals regarding the acquisition of Twitter.

Musk’s attorneys responded that there were no material changes to his plans and proposals regarding the proposed transaction at this time.

Last week, Musk sought to end his deal to acquire Twitter, claiming the social media giant failed to meet its obligations in the merger deal.

Responding to Musk’s notice of the planned termination of the merger agreement, Twitter, in a filing, called Musk’s alleged termination of the agreement “invalid and unwarranted.” Twitter also sued Musk in the Delaware Chancery Court to enforce the merger agreement.

Musk has been under intense scrutiny by the SEC for the past few years. In 2018, he agreed with the agency to pay a $20 million fine and resign as Tesla chairman after threatening investors in a tweet that he had secured funding to take Tesla private, but the SEC discovered that it was a case of fraud. investors.

In March of this year, the SEC asked a federal judge to let Musk’s use of his Twitter handle continue to be monitored, as it was done as part of his 2018 settlement. asked the judge to end his deal and block a subpoena asking for pre-approval recordings of a November Twitter poll about the possibility of selling some of his stock.

In June, Musk appealed the U.S. District Judge’s refusal to end his feud with the SEC over his tweets.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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