Days before the deadline to finalise its agreement with Elon Musk, Twitter Inc. has blocked equity award accounts for employees, according to a report by Bloomberg News. This move is an indication that the social media company expects the agreement will be completed.
Twitter shares rose 1.8% to $51.6 following the news, which is still less than Musk’s offer price of $54.2 per share.
The Delaware court has ordered Musk, the CEO of Tesla Inc., and Twitter to finalise the $44 billion acquisition on October 28. In April, the agreement was initially made public.
According to the article, the social media business informed personnel this week that they won’t be able to access or trade shares from the Equity Award Center.
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The page said the change was done “in anticipation of the closing of the pending acquisition of Twitter by an entity controlled by Elon Musk,” according to the report, citing two people familiar with the change.
In May, Musk attempted to back out of the agreement, claiming that Twitter had overstated the number of spam and bot accounts on its social media network. This sparked a string of legal disputes between the two sides.
The trial that was supposed to take place this week was halted by the judge when Musk changed his mind and declared that he would carry out the agreement under its original provisions earlier this month.
(With inputs from agencies)
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