Robert Miller, a law professor with extensive experience in mergers and acquisitions and related law at the Delaware Chancery Court, where Twitter sued Elon Musk to force the closure of its $44 billion acquisition, believes the tycoon is taking a risk. to jail if he does not comply with the agreement.
In the trial that will begin on October 17, Twitter said that the South African is “committed to closing the merger at the agreed price and terms.”
According to Miller, at trial Musk could be ordered to make a specific performancein case you are in breach of the agreement.
The lawyer noted that the court’s powers range from formally holding Musk “in contempt” to taking control of his shares of Tesla, his electric car company where most of his wealth is.
He also noted that the court may end up ordering Musk to acquire Twitter for the $44 billion or other approved amount and may also be required to pay an additional fine to the social network.
He also pointed out that the court can attach Musk’s shares in Tesla to guarantee payment.
Last year, a TransPerfect entity, a translation company suing over an acquisition, was fined $30,000 a day until it complied with a court order..
Miller noted that in Musk’s case, a potential fine of up to tens of millions of dollars per day can be anticipated.