US federal authorities have launched an investigation against US billionaire Elon Musk over his conduct in taking over Twitter, according to a court filing.
Although it is said to be under investigation, it has not been specified exactly what the focus of the investigation is and which federal authorities are conducting it. Musk asked a judge last week to delay his trial with Twitter until Oct. 28, which a judge in the state of Delaware granted.
The dispute between Twitter and Musk is over the pending financing of the deal to buy the social network reached in April, worth 44 billion dollars.
Musk and the company Twitter in the coming days could reach an agreement to end the litigation, which would allow the richest man in the world to buy the company for 44 billion dollars.
Musk, who is also the director of the Tesla company, suggested to Twitter that if the company ends its dispute with him, it would agree to the terms of the agreement reached in April – to buy the company for $54.20 per share.
In an effort to end the litigation, the two sides agreed that Musk’s testimony at a preliminary hearing in Delaware, scheduled for today, would be delayed, but that negotiations to end the process would continue. The trial was previously scheduled for October 17.
Following announcements on Tuesday that Musk would proceed with a takeover of Twitter, trading in the social network’s stock was halted.
Musk pulled out of the deal a few weeks later, citing concerns that the number of bots on the platform was higher than Twitter claimed.
Twitter denied the allegations and sued Musk to force him to go through with the deal, which sent the share price of Musk’s Tesla company plummeting.