Twitter shares temporarily halts after Elon Musk's proposal

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Twitter shares temporarily halts after Elon Musk's proposal

The shares of Twitter Inc. were stopped in midday trading Tuesday after reports indicated that Tesla Inc. Chief Executive Elon Musk was now proposing to purchase the social-media company at his original offer price, suggesting a possible end to the legal saga between the two parties.

According to a Bloomberg News report, Musk sent a letter to Twitter TWTR with the latest proposal to acquire the company for $54.20 a share. In the past halt, Twitter shares were up 13%. The trading was paused for the first time due to the volatility, and then stopped for pending news.

A Wall Street Journal report said that Musk's legal team relayed the proposal to Twitter s team overnight Monday ahead of an emergency court hearing scheduled for Tuesday. Musk agreed in April to buy Twitter in a deal that valued the company at around $44 billion, but he later said he was terminating the deal. The Tesla TSLA chief cited concerns about bot activity on Twitter and said he believed the company's management team wasn't accurate in its public disclosures about the extent of spam activity on the platform. The two sides have been locked in a legal battle for months, and a Delaware Chancery Court judge was expected to hear from both sides in a five-day trial on October 17. That is a clear sign that Musk recognized in Delaware Court that the chances of winning vs. Twitter board were highly unlikely and this $44 billion deal was going to be completed one way or another, according to Wedbush analyst Daniel Ives. It was not an ideal scenario to accept this path and moving forward with the deal after a long and ugly court battle in Delaware.