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Twitter Says Elon Musk’s Latest Argument to Nix Deal Is Invalid

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Elon Musk’s latest argument to terminate his deal to buy Twitter was his third attempt to nix the acquisition.



Photo:

Jae C. Hong/Associated Press

Twitter Inc.


TWTR 0.81%

said

Elon Musk’s

latest argument to terminate his $44 billion agreement to purchase the social-media company is invalid, and it continues to seek to enforce the deal.

Mr. Musk’s lawyer on Friday argued that Twitter’s roughly $7 million payment to a whistleblower gives the billionaire another avenue to walk away from the deal.

In a letter sent to the Securities and Exchange Commission on Monday, Twitter’s legal team said that the latest reason for termination is “invalid and wrongful” and that it hasn’t breached any of its representations or obligations under the merger agreement. The lawyers said that following approval from shareholders on Tuesday, all of the conditions to close the deal will be satisfied, aside from those that occur at the closing.

“Twitter intends to enforce the Agreement and close the transaction on the price and terms agreed upon with the Musk Parties,” the lawyers wrote.

Mr. Musk’s latest argument to terminate the deal was his third attempt to nix the acquisition.

His lawyers said a June payment Twitter made to its former security head,

Peiter Zatko,

after firing him for what the company said was “ineffective leadership and poor performance” violated the terms of the April merger agreement in relation to the payments the company is allowed to make to employees.

Twitter reached a confidential settlement with Mr. Zatko—who accused the company of failing to protect sensitive user data and lying about security problems—in relation to his former employee’s lost compensation.

The settlement came after monthslong mediation over tens of millions of dollars in potential pay, the Journal has reported, citing people familiar with the matter.

Mr. Zatko is scheduled to testify Tuesday before the Senate Judiciary Committee to discuss his allegations against Twitter’s security practices. The same day, Twitter shareholders will be asked to vote on Mr. Musk’s proposed takeover of the social-media company.

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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