Orlando police pension fund challenges Elon Musk takeover on Twitter

Elon Musk’s acquisition of Twitter would have a new enemy: the Orlando police pension fund.

Reuters reports(Opens in a new window) that the Orlando police pension fund proposed a class action lawsuit on May 6 seeking to delay — but not necessarily reverse — Musk’s planned $44 billion acquisition on Twitter.

The problem appears to be that Musk would effectively own more than 15% of Twitter after the takeover, or 9.6% directly, 8.8% through Morgan Stanley, and 2.4% through Twitter co-founder Jack Dorsey.

Dorsey signaled his approval of Musk’s plan to buy Twitter in April, and Morgan Stanley is lending Musk some of the cash he needs to complete the acquisition, so the police pension fund Orlando seems to believe that this collaboration would give Musk too much of a stake in Twitter. .

According to the report, the fund believes a Delaware law requires the deal be delayed for three years unless two-thirds of Twitter shareholders agree to expedite the acquisition.

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Reuters reports that the Orlando police pension fund has named Twitter and its board of directors as co-defendants in the lawsuit. Twitter did not immediately respond to request for comment.

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Dolores W. Simon