Chancery OKs Limited Investor Probe Of Musk's Twitter Deal

By Jeff Montgomery (May 20, 2022, 1:04 PM EDT) -- Investors who challenged Elon Musk's proposed $44 billion takeover of social media giant Twitter Inc. won limited Delaware Chancery Court approval Friday to probe allegations that Musk's plan should require a supermajority vote of non-affiliated stockholders.

While saying that she was "highly skeptical" of allegations filed on behalf of the stockholders, led by Orlando Police Pension Fund, Chancellor Kathaleen St. J. McCormick said she would order fast-tracking of "extremely limited" discovery on stockholder claims that the deal is ineligible for quick, simple majority approval because Musk owns or controls 15% or more of Twitter's stock.

During a teleconference argument, the chancellor...

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