Elon Musk, Twitter yet to reach a deal on deal

Two sources familiar with the litigation told the Reuters on Wednesday that Elon Musk and Twitter Inc have not yet reached an agreement on how to end the litigation and clear the way for the world's richest person to close his $44 billion deal for the social media platform.

If Twitter dropped its lawsuit against him, Musk, the world's richest person, proposed to Twitter late Monday that he would change course and buy the company for $54.20 per share.

The lawyers for Musk and the legal team updated the judge on Tuesday with their attempts to find a solution to mutual distrust and find a process for closing the deal.

One source said you should keep an eye on the docket.

Musk is scheduled to be deposed in Austin, Texas on Thursday.

That's the pressure point, said a second source.

Musk canceled a deposition in September citing concerns about a Twitter attorney's exposure to someone who later tested positive for COVID - 19, according to a court filing made public on Wednesday.

The shares of Twitter were down 2.5 per cent at $50.72 in early trading. The stock hit its highest level on Tuesday after Musk and Twitter agreed in April that he would buy the company for $54.20 per share.

Musk, who is also the chief executive of Tesla Inc., said in July he was walking away from the takeover agreement because he discovered that Twitter had misled him about the amount of fake accounts, among other claims.

The case of Musk was based on allegations by Twitter whistleblower Peiter Mudge Zatko that became public in August.

The legal team of Twitter wants to investigate if Quinn Emanuel lawyer Alex Spiro, who has led the case for Musk, communicated with the whistleblower as early as May. The law firm has said in court filings its attorneys did not communicate with Zatko or his representatives.

A May 6 email to Spiro was found by Twitter, a former Exec at Twitter who led teams directly involved with Trust Safety Content Moderation. The sender offered to communicate via alternative means. Zatko, who was head of Twitter security until he was fired in January, has said he did not communicate with Musk or Musk's attorneys at Quinn Emanuel under oath.

In a Monday ruling, the judge, Kathaleen McCormick of Delaware's Court of Chancery, said it was at least plausible that Zatko sent the anonymous email. She ordered Spiro to file a statement with the court on his actions regarding the May 6 email by 4: 30 pm ET.