Institutional investors who helped Ilon Mask find loan funds to finance the Twitter buy-out have now begun to receive court summonses to share with the U.S. justice authorities the circumstances of the deal and the correspondence with the billionaire, who announced in early July that they would not fulfil their commitments in April.
According to Reuters, Twitter's management, by involving investors in testifying, wants to know at what point he decided to give up the idea of buying a social network, why he did it, and whether he is now planning to break the deal on the basis of his lack of sufficient funds to buy Twitter assets at a price of $54.20 per share. The subpoenas have already been received not only by institutional investors like Morgan Stanley, but also by private partners, Ilon Mask, who have expressed their willingness to participate in the transaction. The trial in this case is scheduled to take place on 17 October in Delaware and will end in five working days.
The experts explain that, technically, Ilon Mask may refuse to complete the deal under the conditions set out in April, even if the court compels him to do so. The billionaire must prove that he does not have the necessary financial guarantees to buy Twitter on initial terms. The concern of Twitter lawyers is also the fact that the original company, Andressen Horowitz, fired Robert Swan, who had been working with Ilon Mask for a long time.
As a matter of fact, some of the company's private shareholders have also started to speak on Twitter's side, one of them filed a lawsuit against Ilon Mask the other day, demanding that he be compelled to buy the company's shares at a cost of $54.20 a grand. Because the lawsuit is collective, it may be joined by other Twitter shareholders who believe that the loss of the company's shares as a result of Mask's actions has caused them direct material damage.