Elon Musk Becomes Subject Of SEC Inquiry On Twitter Acquisition
Elon Musk appears to have again become the target of the US Securities and Exchange Commission. A filing made this morning by Twitter (NYSE: TWTR) indicated that Musk has become the subject of SEC scrutiny in relation to his commentary on his acquisition of the social media firm.
The agency reportedly has been in contact with Musk since May, when on May 18 the agency called Musk’s legal counsel related to a tweet made wherein Musk said “this deal cannot move forward.” The tweet, made a day earlier, was in reference to his Twitter acquisition.
Specifically, the SEC was looking for the related filing indicating the suspension of the merger agreement, as per Musk’s comments. “The term “cannot” suggests that Mr. Musk and his affiliates are exercising a legal right under the terms of the merger agreement to suspend completion of the acquisition of Twitter or otherwise do not intend to complete the acquisition,” said the agency.
Musk had yet to respond by June 2 to the inquiry, at which point a formal letter was sent to Musk and his revocable trust. With no response evidently received, the agency has begun to file the correspondence as a means of enticing a response from Musk, in line with their suggested resolution methods within the letter.
“If you do not respond, we will, consistent with our obligations under the federal securities laws, decide how we will seek to resolve material outstanding comments and complete our review of your filing and your disclosure. Among other things, we may decide to release
publicly, through the agency’s EDGAR system, all correspondence, including this letter, relating
to the review of your filing,” stated the letter.
Twitter last traded at $36.75 on the NYSE.
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