Following a Bloomberg report that said Elon Musk had offered to go ahead with a $ 44 billion acquisition of Twitter after taking a dramatic U-turn on his decision to walk away from the deal, shares in the micro-blogging site's company were suspended in the New York stock exchange. The report had said that the Tesla chief executive had made an offer to buy the business for the original deal price of $ 54.20 a share in a letter to Twitter.
Shares in the social media site climbed more than 12% to $ 47.93 in New York before trading was halted.
Elon Musk had been set for a courtroom showdown with Twitter on 17 October, with multiple legal commentators warning he had a slim chance of succeeding in his attempt to scrap the deal.
The microblogging platform has been demanding that Musk, the world’s richest man, complete the deal under terms agreed in April. It is suing him in Delaware, the state where Twitter is incorporated and with a strong legal reputation for enforcing merger agreements.
The Wall Street Journal reported on Tuesday that Elon Musk had made the proposal to Twitter’s lawyers last night and had filed a letter with the Delaware chancery court before an emergency hearing on the deal today. Twitter has been approached for comment.