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Jakub Porzycki | Nurphoto | Getty Images
Twitter said Monday that payments to a whistleblower did not breach any of its obligations under the $44 billion acquisition proposed by Elon Musk, after the billionaire sent a third letter to try to call off the deal.
The social media giant said it intends to enforce the agreement and close the transaction on the price and terms agreed upon with Musk, according to a Securities and Exchange Commission filing.
Twitter shareholders will vote on Tuesday on whether to approve or reject Musk’s takeover bid.
Twitter’s board of directors has previously urged its shareholders to approve the company’s sale to Musk.
On Friday, Musk’s legal team sent a letter to Twitter, citing another reason to call off the proposed acquisition. Musk’s team alleged that the multimillion dollar payment Twitter paid to whistleblower Peiter “Mudge” Zatko violated the terms of the deal.
Zatko last month alleged “extreme, egregious deficiencies” by the social media company related to privacy, security and content moderation.
Musk’s latest letter is his third attempt to call the Twitter deal off.
The Tesla CEO’s legal team first filed a notice on July 8 with the SEC to terminate the Twitter acquisition, alleging that “Twitter has not complied with its contractual obligations.”
A follow up letter on Aug. 29 cited allegations made by Zatko as a reason why the deal should not go ahead.
In Friday’s letter, Musk’s legal team said an alleged $7.75 million severance payment to Zatko from Twitter is another breach of the takeover agreement.
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Image and article originally from www.cnbc.com. Read the original article here.