The uncertainty around the Twitter Inc. deal has intensified ever since Elon Musk announced on the company’s namesake platform that the deal had been put on hold.
A Wall Street Journal report, quoting lawyers, suggests it might be difficult for the Tesla Inc. CEO to backtrack at this juncture.
What Happened
Musk negotiated the agreement with several seller-friendly features and the most notable is one legally called “special performance,” the Journal noted. This vests Twitter with the right to ask a court to “force” Musk into honoring his commitment to buy the company.
The report noted precedence with French fashion retailer LVMH. After LVMH tried to wiggle out of a previously-agreed deal to buy U.S. jewelry retailer Tiffany, the latter sued the former in a U.S. court. The deal finally went through at a lower price….
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