Musk’s representatives and Twitter held talks in the past few weeks about a buyout for less than the $54.20 a share.
Elon Musk’s proposal to revive his $44 billion offer for Twitter Inc. followed earlier discussions about cutting the price that failed to yield an agreement, according to people familiar with the matter.
Musk’s representatives and Twitter held talks in the past few weeks about a buyout for less than the $54.20 a share, which didn’t go anywhere, said the people, who asked not to be identified because the talks were private.
The Wall Street Journal and the New York Times earlier reported the discussions, with the Times saying Musk had sought a 30% reduction in the price.
A representative for Twitter declined to comment. A spokesman for Musk’s legal team didn’t immediately return an email seeking comment late Wednesday.
This week, Musk said in a letter to Twitter that he would be willing to complete the deal for the original price. A deposition of Musk won’t be taking place on Thursday as earlier scheduled, Bloomberg News reported earlier.
A deal at the original price could close as soon as within the next week if the two sides can reach a stipulated agreement, though there’s no certainty that they will come to one on that time line, one of the people said. In that scenario, the banks would be expected to fund their debt commitments and likely syndicate the offering with investors after the deal closes.
Delaware Chancery Judge Kathaleen St. J. McCormick said Wednesday that since neither side has yet asked to pause the case, she’s pressing ahead with a trial set for Oct. 17. In a securities filing this week, Musk offered to go forward with the deal if Twitter’s suit was put on hold.
The case is Twitter v. Musk, 22-0613, Delaware Chancery Court (Wilmington).