Musk’s $44 bn Twitter deal faces 1st legal hurdle in US
   Date :08-May-2022

THE Orlando Police Pension Fund has sued Elon Musk and his $44 billion buyout of Twitter, claiming that the deal cannot close till 2025 owing to Tesla CEO’s stake in the micro-blogging platform. The proposed class-action lawsuit, filed by the Orlando Police Pension Fund in the Delaware Chancery court, alleged that since Musk was an “interested stockholder” before the merger agreement was approved by Twitter’s board, “the proposed takeover may not lawfully close until 2025 absent approval by the affirmative vote of over 66 per cent of Twitter’s voting stock not aowned’ by Musk within the meaning of Section 203”.
The lawsuit also named former Twitter CEO Jack Dorsey, current CEO Parag Agrawal and the company’s board as defendants. Under Section 203, shareholders who own more than 15 per cent of the company can’t enter a merger without two-thirds of the remaining shares granting approval.