Legal setback for Elon Musk over Tesla’s ‘private’ tweet Business

Mr. Musk has already been forced to pay a $20 million fine to the Securities and Exchange Commission for the tweet.

He has been ordered to appoint two independent directors to Tesla’s board and must seek legal advice when he tweets information that may be market sensitive.

Mr. Musk has since hit on the SEC and sometimes called it the “Short Sellers Enrichment Commission.”

JP Morgan is also suing Mr. Musk for allegedly breaching a contract with the bank by sending the tweet.

The court case comes as the Tesla founder tries to buy Twitter for $43bn (£35bn).

The company is threatening to block the takeover by flooding the market with cheap shares to dilute its 9% shareholding and make it harder for it to take control.

The so-called “poison pill” tactic is designed to prevent Mr Musk from buying a 15% share of the company and launching a hostile takeover.

Mr Musk is now rushing to recruit other investors who could each acquire just under 15% to take majority control.

It is believed that private equity giant Silver Lake Partners could join Mr Musk’s offer on Twitter.

Silver Lake is a big investor in Twitter, and its co-CEO, Egon Durban, sits on Twitter’s board.

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This notice was published: 2022-04-17 12:13:57

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