[From another of our properties -- orginal dateline 10.04.22.] Many outlets are reporting this morning that Elon has offered essentially the original deal (on price and structure) to the Twitter board.
This (Musk's show of bravado) could either moot the litigation, or be a ploy -- as follows. At law, in Delaware Chancery court (where the trial is slated for mid-October, at the moment), if Twitter were to later today or tomorrow... object to even small terms changes in Mr. Musk's "renewed" offer -- he might be empowered to walk away. There is a UCC contract doctrine which (while not directly applicable -- and I'm oversimplifying) holds that minor terms modifications, between sophisticates (like Musk and Twitter) will be resolved in favor of upholding the deal -- and not a strict, patrician construction -- of minor points. [The law in sum, favors holding people to the essential terms of struck deals.]
And, it could very well then grant Musk a free hall pass (no $1 billion kill fee) -- in court, if Twitter rebuffs him now. [It also says that Musk's lawyers are likely telling him he will lose in Delaware, and be forced to close the deal anyway. So. . . why not just bite the bullet?]
But I am most interested to see if this ultimately tanks Tesla's NASDAQ price, since if he goes forward with the $54 a share offer, he will be deeply distracted (taking Twitter private, and revamping its operations will be a full time job!). . . and not fully running Tesla.
This will be. . . fascinating -- two for two, in as many days, for Billy the Kid!
Onward, grinning. . . .
नमस्ते
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