Elon Musk's planned Twitter takeover hit hard concrete late Friday as the billionaire said he won't buy the social media platform.
In his communications regarding his halt, he alleges Twitter has not given him full and accurate information regarding so-called 'bots (computers automated to act on their own given certain commands) and false accounts.
Without that information, he says he cannot get a correct picture of the company.
Musk's side is quoted as saying "Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect"
In response, Twitter Chairman Bret Taylor stated "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."
When the takeover bid was announced on April 14, the share price in the offer was $54.20. Now the stock is in the $35 range.
Wall Street observers say that at current price levels, Musk would be very disinclined to close the takeover on its initial terms. Whether he can be forced to adhere to it is something the courts will have to determine.