Twitter shares soared yesterday after Elon Musk indicated his offer to buy the social media network was back on the table after months of sniping between the two sides as they prepared to go to court.
According to a regulatory filing, Musk’s lawyers said that the entrepreneur intended to close the deal at the previously agreed price of $54.20 a share, once debt financing was received, provided the court halted the legal action and adjourned the upcoming trial and related proceedings.
In a statement, a Twitter spokesperson acknowledged it had received the letter and said the “intention of the company is to close the transaction at $54.20 per share”.
Twitter shares, which had been suspended before the announcement after news of the offer was first reported by Bloomberg, closed 22 per cent higher at $52 each after trading resumed.
Musk’s move could put an end to one of the most high-profile corporate legal battles in decades. The two parties were due to go to trial in a Delaware court from October 17.
Twitter is now seeking protection from the court, a person close to the company said, for guarantees on timing and certainty of closing the deal.
Meanwhile, Musk began promoting his ambitious plans for the platform following his volte-face. “Buying Twitter is an accelerant to creating X, the everything app,” he tweeted.
Do you think Twitter should accept Musk’s latest offer? Vote in our poll or share your thoughts with me at firstft@ft.com — Gordon
Five more stories in the news
1. US set to impose sweeping export controls to rein in Chinese chipmakers The US is preparing to introduce sweeping export controls on American and non-American companies in an effort to slow Chinese efforts to obtain semiconductors and chipmaking equipment for supercomputers and other military-related applications. The controls are the latest effort to prevent China from using US technology to develop military programmes, from quantum computing to hypersonic weapons.
2. Russian troops retreat from Kherson Kirill Stremousov, appointed as acting governor of the Kherson region by Vladimir Putin, said Russia’s troops in the area were “regrouping to get their strength together and strike back” less than a week after Russia annexed it alongside three other Ukrainian provinces.
3. US job vacancies plunge by more than 1mn Data released by the US labour department yesterday showed employers cut more than 1mn job vacancies in August, the second sharpest decline in two decades of data. The figures indicate the Federal Reserve’s aggressive efforts to cool the economy are starting to hit the labour market.
4. Ray Dalio hands over reins at Bridgewater The 73-year-old billionaire has given up control of the hedge fund he founded, Bridgewater Associates, ending a drawn-out transition of power that had come to define the industry’s succession problems. Dalio has transferred all of his voting rights to the board of directors, said people familiar with the details.
5. Herschel Walker’s US Senate campaign in Georgia rocked by abortion scandal The former football star, who staked his US Senate campaign on calling for a national abortion ban, is facing a backlash following a report that he paid a former girlfriend to end her pregnancy in 2009. The development raises questions about Walker’s candidacy in the crucial swing state of Georgia with just over one month to go until the midterm elections.
The day ahead
Opec+ output cuts Riyadh, Moscow and other oil producers are set to announce deep production cuts as the Opec+ cartel meets in Vienna, according to people with knowledge of the discussions, in a move that is likely to draw US countermeasures to keep prices down.
Biden in Florida The US president will travel to Florida today to survey the damage caused by Hurricane Ian. The Democrat and Florida governor Ron DeSantis, a Republican, have temporarily halted political hostilities as they focus on the state’s path to recovery.
Company earnings Investor eyes will be on whether Levi’s price increases over recent quarters will again provide a financial cushion for the denim maker when it reports third-quarter earnings today. Levi’s was confident in July that the strength of its brand would not deter consumers.
Economic data The growth rate of the American services sector is expected to have slowed in September amid a backdrop of continued elevated inflation and rising interest rates. Economists expect the September reading of the US Institute for Supply Management’s non-manufacturing index to be down from August. The US and Canada will also both update on their trade balances today.
Nobel Prize in chemistry The award will be announced in Stockholm, Sweden. Yesterday, three scientists won the prize in physics for translating the predictions of quantum theory into the foundations of a practical discipline in information and communications technology.
What else we’re reading
‘Someone will get hurt’ Investors and Wall Street analysts are sounding the alarm about a possible “market accident”, as successive bouts of tumult in US stocks and bonds and a surging dollar cause rising levels of stress in the financial system. “The velocity of things breaking around the world . . . is obviously a ‘neon swan’ telling us that we are clearly now in the market accident stage,” said one market strategist.
Asset managers may regret becoming the new banks Since the financial crisis asset managers and private equity houses have taken over the funding once provided almost exclusively by banks. Now, asset managers are under scrutiny on two continents for their power and importance as well as concerns about the products they sell and once again the focus is on an alphabet soup of acronyms, in particular ESG and LDI, writes Brooke Masters.
Xi Jinping’s third term is a tragic error Xi Jinping will shortly be confirmed for a third term as general secretary of the Communist party and head of the military. But his achievement of such unchallengeable power is not good for China or the world, writes Martin Wolf.
Is Uber’s driver shortage finally over? Uber says its chronic shortage of drivers is finally in the rear-view mirror, allowing it to focus on passenger complaints such as cancellations and wait times, according to Andrew Macdonald, head of mobility at the global ride-hailing group.
Airports vs airlines No one loves airports. Passengers begrudge waiting for check-in, baggage drop and security. And investors are aggrieved because their stakes seem less stable and low risk than a few years ago. Increasing costs and environmental restrictions demand a different perspective, writes Peggy Hollinger.
We want your input
Following the success of this year’s inaugural ranking of Africa’s Fastest Growing Companies, the Financial Times is compiling its next list of high-growth businesses, to be published in May 2023. Apply now to be considered.
Read the full article here
