Elon Musk changes course and proposes going through with Twitter deal at original price: Sources

Elon Musk has reversed people and is again proposing to bargain Twitter for $54.20 a share, according to sources acquainted with the matter.

Twitter shares jumped arsenic overmuch arsenic 15% connected Tuesday aft Bloomberg archetypal reported connected the Tesla CEO's plans to spell distant with his woody to get the company. The banal was halted aft the report.

A fewer weeks aft Musk agreed to the woody earlier this year, valuing Twitter astatine $44 billion, helium rapidly tried to backmost out, officially informing the institution successful July of his intentions to terminate the agreement. Twitter sued Musk to unit him to spell done with the purchase. The 2 sides were scheduled to spell to proceedings successful Delaware Chancery Court connected Oct. 17.

Musk alleged that Twitter was misstating the fig of "bots" connected its work arsenic 1 of the reasons helium was reneging connected the deal. He and his lawyers claimed that the societal media institution was misleading investors by providing mendacious numbers successful firm filings with the Securities and Exchange Commission.

Twitter countered, however, that Musk's assertions of fraud were incorrect and were based connected a misunderstanding of the mode the institution tallies bots and fake accounts connected its platform.

Twitter alleged that Musk was looking for a crushed to backmost retired of the woody erstwhile the company's shares dropped alongside a broader diminution successful the wide market.

CNBC has learned that Musk could ain Twitter wrong a substance of days and that each litigation would travel to an end.

Meanwhile, Tesla shares dropped astir $9 per stock arsenic the quality of Musk's connection crossed, but are inactive up much than 2% connected the day.

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