Orlando Police Pension Fund Challenges Elon Musk's Twitter Buyout
Elon Musk's acquisition of Twitter reportedly has a new foe: the Orlando Police Pension Fund.
Reuters reports that the Orlando Police Pension Fund proposed a class-action lawsuit on May 6 seeking to delay—but not necessarily cancel—Musk's planned $44 billion Twitter acquisition.
The problem appears to be that Musk would effectively own more than 15% of Twitter after the buyout—9.6% directly, 8.8% via Morgan Stanley, and 2.4% via Twitter co-founder Jack Dorsey.
Dorsey signaled his approval of Musk's plan to buy Twitter in April, and Morgan Stanley is loaning Musk some of the money he needs to complete the acquisition, so the Orlando Police Pension Fund seems to believe this collaboration would give Musk too large a stake in Twitter.
According to the report, the fund believes that a Delaware law requires the deal to be delayed by three years unless two-thirds of Twitter's shareholders agree to fast-track the acquisition.
Reuters says the Orlando Police Pension Fund named Twitter and its board of directors as co-defendants in the lawsuit. Twitter didn't immediately respond to request for comment.
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