TWTR - Musk confirms letter sent to go through with $44B Twitter deal; stock remains halted

The months-long drama between Elon Musk and Twitter ( NYSE: TWTR ) took an unexpected turn, Tuesday, as Musk confirmed the sending of a letter to Twitter ( TWTR ) proposing the completion of the $44B buyout deal he had agreed to and then tried to abandon.

In an updated SEC filing , Musk attached the letter his attorneys sent to Twitter's ( TWTR ) legal team. Musk is proposing going through with the deal pending a stay of the Twitter v. Musk et al. trial action, as well as receiving the debt financing.

The trial is currently set to start in Delaware Chancery Court on October 17.

"On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the 'Musk Parties'), we write to notify you that the Musk Parties intend to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C.A. No. 202-0613-KSJM) (the 'Action') and adjourn the trial and all other proceedings related thereto pending such closing or further order of the Court."

At Wedbush Securities, analyst Dan Ives said there is only one thing that can be determined by Musk's offer to come back and buy Twitter ( TWTR ) at the deal's initial price of $54.20 a share.

"This is a clear sign that Musk recognized heading into Delaware Chancery Court that the chances of winning [versus] the Twitter board was highly unlike, and this $44B deal was going to be completed one way or another," Ives said.

The parties are reportedly returning to the Delaware Court of Chancery Tuesday afternoon to set up a plan for next action.

Twitter ( TWTR ) stock has been halted for several hours after rapidly rising 12.7% for news pending since 12:13 p.m. following reports of the letter .

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