Elon Musk has no easy way out of the deal with Twitter.
Since the financial crisis, corporate attorneys have aimed to create the ultimate merger document.
Tesla CEO and world's richest man Elon Musk is publicly considering cancelling his $44 billion offer for Twitter, putting the "bulletproof" modern contract agreement to the test.
Musk tweeted this week that the "transaction can't move forward" until Twitter delivers granular data regarding phoney accounts.
The Twitter board has said that it is committed to "completing the transaction as soon as possible at the agreed price and terms."
transaction can't be abandoned. Musk & Twitter signed a merger agreement that says "the parties will use their best endeavours to finalise and implement the transactions envisaged by this agreement."
With tech stocks Falling, Tesla shares that comprise Musk's riches and collateral for a margin loan to buy Twitter are in the spotlight.
The agreement has a "reverse termination fee" of $1 billion that Musk would have to pay if he pulled out of the merger agreement.
But if all the other closing conditions are met and all Musk has to do is show up with his $27.25 billion in equity, Twitter can try to force Musk to close the deal.
Since the financial crisis, this legal idea, known as "specific performance," has become a common part of leveraged buyouts.
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