(AP) — Trading in Twitter shares was halted after shares surged on reports that Elon Musk will go ahead with a $44 billion deal to buy the company after months of legal battles.
The news, based on an anonymous source, was first reported by Bloomberg News.
Musk offered to buy the San Francisco company for $54.20. The stock jumped nearly 13% to $47.95 before trading stopped.
According to Tuesday’s report, Musk sent a letter to Twitter offering to finalize the deal, which already has shareholder approval, at the original price.
Twitter did not immediately respond to messages for comment on Tuesday.
The trial seeking to force Musk to buy Twitter will begin in Delaware Chancery Court on October 17.
Musk’s argument for winning the case – and thus walking away from the deal – is based in large part on his accusations that Twitter misrepresents how it measures the size of its “spam bot” accounts that are useless to advertisers. But most legal experts believe he faced an uphill battle in convincing Chancellor Kathaleen St. Jude McCormick, the court’s chief judge, said that something had changed since the April merger agreement that justified the termination of the deal.
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