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According to a source familiar with the situation, Elon Musk and Twitter Inc. may strike an agreement to settle their legal dispute within the next few hours, paving the way for the world’s richest person to finalise his $US44 billion ($A68 billion) acquisition of the social media platform.
Musk, who is also CEO of electric car maker Tesla Inc, proposed to Twitter late on Monday he would change course and abide by his April agreement to buy the company for $US54.20 per share if Twitter dropped its litigation against him.
Musk’s proposal on Monday included a condition that the deal closing was pending the receipt of the necessary debt financing.
The potential agreement would likely remove that condition, said the source, who requested anonymity as the discussions are confidential.
Twitter’s legal team and lawyers for Musk updated the judge on Tuesday with their attempts to try to overcome mutual distrust and find a process for closing the deal.
Musk is scheduled to be deposed on Thursday in Austin, Texas.
Musk cancelled a deposition in late September, citing concerns about a Twitter lawyer’s possible exposure to someone who later tested positive for COVID-19, according to a court filing made public on Wednesday.
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Shares of Twitter were down 0.7 per cent at $US51.63 on Wednesday afternoon.
The stock on Tuesday hit its highest level since Musk and Twitter agreed in April that he would buy the company for $US54.20 per share.
Musk said in July he was walking away from the takeover agreement because he discovered Twitter had allegedly misled him about the number of fake accounts, among other claims.
Part of Musk’s case was based on allegations by Twitter whistleblower Peiter “Mudge” Zatko that became public in August.
Twitter’s legal team has wanted to investigate if Quinn Emanuel lawyer Alex Spiro, who has led the case for Musk, communicated with the whistleblower as early as May.
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The law firm has said in court filings its lawyers did not communicate with Zatko or his representatives.
Spiro did not immediately respond to a request for comment.
Twitter uncovered an anonymous May 6 email to Spiro from “a former Exec at Twitter leading teams directly involving Trust & Safety/Content Moderation,” according to court documents.
The sender offered to communicate “via alternate means”.
Zatko, who was head of Twitter security until he was fired in January, has said under oath he did not communicate with Musk or his lawyers at Quinn Emanuel.
With AAP. (Content has been tweaked for length and style.)
Jaw de Guzman is the content producer for Comms Room, a knowledge platform and website aimed at assisting the communications industry and its professionals.
