A Florida pension fund is filing a legal challenge to Elon Musk’s $44 billion takeovers of Twitter, saying his financial arrangements with other shareholders of the social media platform should Block the deal until 2025.
The Orlando Police Pension Fund filed a complaint in Delaware Supreme Court against Twitter and its board, including CEO Parag Agrawal. Delaware law reportedly prohibits a quick merger because Musk struck a deal with other major Twitter shareholders to back the takeover, including his financial adviser Morgan Stanley and Twitter founder Jack Dorsey.
The fund claims the arrangement triggered a Delaware law that requires a three-year delay in closing such deals. The arrangements make Musk an “interested shareholder,” who must wait three years to complete the deal or win investor support from investors who control “at least 66% (2/3) of Twitter’s outstanding voting shares” and are independent of Musk. support.
Twitter accepted Musk’s $54.20-a-share offer in April, with the billionaire saying his aim was to protect free speech, which is why he wants to take Twitter private. Musk confirmed in a regulatory filing last month that he had secured some financing commitments to support the Twitter acquisition.
The U.S. Federal Trade Commission (FTC) is reviewing Musk’s $44 billion takeovers of Twitter and has set a deadline for the commission to decide next month whether to conduct an in-depth review of the deal, according to people familiar with the matter.