Judge grants Elon Musk’s request to delay Twitter trial

Elon Musk’s surprise return to the bargaining table with Twitter this week may have merely been the opening salvo in the next stage of the protracted struggle over the future of the company.

On Thursday, Musk managed to slow Twitter’s lawsuit against him. He asked a judge to delay a trial that was set to begin in little more than a week and that could force him to make good on a deal he struck in April to acquire the company for $44 billion.

Kathaleen McCormick, the judge overseeing the case, granted Musk’s request, giving the billionaire three weeks to complete his purchase of Twitter.

The decision gives Musk more time to settle his financing. Musk said in a legal filing that the process would take several weeks and that he could get it done by Oct. 28. If the transaction does not close by then, the judge said, a trial will be scheduled in November.

Twitter had opposed the motion, arguing that Musk did not appear to be serious about lining up his financing and that the trial should proceed unless he quickly makes good on his latest offer of $54.20 per share.

“We look forward to closing the transaction at $54.20 by Oct. 28,” a Twitter spokesperson said Thursday evening.

Musk asked for a delay as Twitter board members discussed his offer and negotiations dragged into their third day.

Twitter had been set to face Musk in court Oct. 17. But on Monday, he delivered a letter to Twitter declaring that he would pay $44 billion for the company, as he agreed to do in April before declaring he would quit the deal.

Twitter plans to proceed with its litigation until a deal is certain, two people with knowledge of the confidential discussions said.

Lawyers for Twitter said in a legal filing that Musk had refused to commit to a closing date. But his lawyers argued that clinging to the lawsuit would jeopardize the deal and that the banks that had agreed to fund Musk’s bid for Twitter were prepared to honor their commitments.

If Musk’s debt financing falls through, he can pay a $1 billion breakup fee to Twitter and walk away from the acquisition.

A deposition scheduled for Thursday with Musk was canceled as negotiations continued, two people familiar with the matter said. It has been rescheduled for Monday.