Florida Pension Fund sues Elon Musk & Twitter over delay in takeover

Florida Pension Fund has filed a lawsuit against Tesla CEO Elon Musk and Twitter on Friday seeking to stop him from completing his deal of a $44 billion takeover of a microblogging site before 2025. Orlando Pension Fund in the lawsuit filed in the Delaware Chancery Court has said that the Delaware law does not allow a quick merger as Elon Musk had signed agreements with other big shareholders of Twitter, The Guardian reported. The big shareholders of Twitter who support Musk in buying out the social media company include Morgan Stanley and Twitter founder Jack Dorsey.

According to the lawsuit, the Orlando Pension Fund seeks to delay the completion of the deal until two-thirds of shares which are not "owned" by him require approval. Twitter and its board including Jack Dorsey and CEO Parag Agrawal have been mentioned as defendants in the legal case. The lawsuit wants the court to declare Twitter directors breached their fiduciary duties as well as recoup legal charges as per The Guardian report. Reportedly, Musk intends to complete his Twitter takeover this year after he bought it for $54.20 per share. Earlier, Elon Musk had said that he has been able to raise approximately $7 billion from investors like Larry Ellison and the Qatar state investment fund. 

Larry Ellison commits $1 billion to help Musk in buying out Twitter

According to US Securities and Exchange Commission, Oracle co-founder Larry Ellison has committed $1 billion while Saudi Arabian investor Prince Alwaleed bin Talal, had pledged to roll his $1.9 billion stakes into the deal. Tesla boss Elon Musk is also expected to take over as temporary CEO of Twitter, but only for a few months. Musk will likely take up the top position in the social media platform shortly after he completes his $44 billion deal to take over the microblogging site, CNBC reported citing sources. If Musk becomes the CEO of Twitter, he will be replacing Parag Agarwal, the incumbent CEO, who took over the position from Jack Dorsey in November last year. Earlier in April, Musk acquired Twitter for an estimated $44 billion. The billionaire entrepreneur had announced the deal in an online statement released on the microblogging platform wherein he talked about free speech, spambots and the potential of Twitter in the world.

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