Elon Musk and Twitter sued by Florida pension fund over $44 billion takeover – National
Elon Musk and Twitter Inc TWTR.N were sued Friday by a Florida pension fund seeking to stop Musk from quickly completing its planned $44 billion takeover of the social media company.
In a lawsuit filed in Delaware Chancery Court, the Orlando Police Pension Fund said that under Delaware law, Musk cannot complete the takeover until at least 2025 unless the holders of two-thirds of the shares that do not belong to him do not approve of it.
The lawsuit said Musk became an “interested shareholder” after taking a more than 9% stake in Twitter, which necessitated a delay.
Questions and uncertainties remain over Elon Musk’s takeover of Twitter
Musk also runs electric car company Tesla Inc TSLA.O and is the richest person in the world according to Forbes magazine.
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Twitter and its board, including chief executive Parag Agrawal, are also charged.
The lawsuit seeks to delay the closing of the merger until at least 2025, to declare that Twitter’s directors breached their fiduciary duties and to recover costs and legal fees.
Twitter declined to comment. A lawyer for Musk did not immediately respond to a request for comment.
(Reporting by Jonathan Stempel in New YorkEditing by Nick Zieminski)