Twitter plans to fight back Elon Musk with firm that invented Poison Pill defence: Report

Twitter’s board, earlier this year, had adopted the ‘Poison Pill’ defence in a bid thwart Elon Musk’s attempts of a hostile takeover. Now, word is that the company has hired the firm that invested this defence technique to plead its case in the Delaware Court against the Tesla CEO’s decision of backing down from the buyout deal.

Musk, in a document submitted to the US Securities and Exchange Commission, last week said that he wanted to pull out of the $44 deal to purchase Twitter. In the letter, Musk claimed that the micro-blogging platform had failed to provide information pertaining to spam or fake accounts on its platform. “Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” Musk’s lawyers wrote in the document submitted to the SEC.

Responding to the news, Twitter’s chairman Bret Taylor said that Twitter’s board planned to take legal against the SpaceX founder to ‘enforce the merger agreement’.

The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.

— Bret Taylor (@btaylor) July 8, 2022

Now, The Verge reports that Twitter has hired the firm Wachtell, Lipton, Rosen & Katz to sue Musk in the Delaware Court of Chancery. The publication notes that the firm’s founding partner, Martin Lipton is credited with inventing the “poison pill” defense, which the company’s board enacted earlier this year to prevent Musk from taking over the company.

Musk, on the other hand, has reportedly hired Quinn Emanuel Urquhart & Sullivan to defend his case. Interestingly, this is not the first time that Musk will be working with this firm. In the past, the firm defended the Tesla CEO in a defamation trial by British researcher Verns Unsworth over Musk’s ‘pedo guy’ comment. The firm also defended Musk in a case against the SEC when the former tweeted about securing funding to take Tesla private. The case had resulted in Musk and Tesla paying a penalty of $20 million each.

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