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Elon Musk's $44 bn Twitter buyout challenged in shareholder lawsuit: Report

Musk and Twitter Inc were sued on Friday by a Florida pension fund

Agencies | Updated on: Friday, May 06, 2022, 11:23 PM IST

In a proposed class action filed in Delaware Chancery Court, the Orlando Police Pension Fund said Delaware law forbade a quick merger because Musk had agreements with other big Twitter shareholders.
/Elon Musk | AP
In a proposed class action filed in Delaware Chancery Court, the Orlando Police Pension Fund said Delaware law forbade a quick merger because Musk had agreements with other big Twitter shareholders. /Elon Musk | AP
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Elon Musk and Twitter Inc were sued on Friday by a Florida pension fund seeking to stop Musk from completing his $44 billion takeover of the social media company before 2025, Reuters report said.

In a proposed class action filed in Delaware Chancery Court, the Orlando Police Pension Fund said Delaware law forbade a quick merger because Musk had agreements with other big Twitter shareholders, including his financial adviser Morgan Stanley and Twitter founder Jack Dorsey, to support the buyout, the report said.

The fund said those agreements made Musk, who owns 9.6 percent of Twitter, the effective "owner" of more than 15 percentof the company's shares. It said that required delaying the merger by three years unless two-thirds of shares not "owned" by him granted approval. Morgan Stanley owns about 8.8 percent of Twitter shares and Dorsey owns 2.4 percent, the report said.

(With inputs from Reuters)

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Published on: Friday, May 06, 2022, 11:23 PM IST