Shares of Twitter Inc fell about 6 p.c in premarket buying and selling on Monday as a authorized tussle between Elon Musk and the social media firm is anticipated to take middle stage after the world’s richest particular person walked away from the $44 billion (roughly Rs. 3,49,400 crore) deal.

Musk, the chief govt officer of Tesla, mentioned on Friday he was terminating his deal to purchase Twitter as a result of the corporate had breached a number of provisions of the merger settlement.

Twitter is planning to sue Musk as early as this week and drive him to finish the acquisition, folks conversant in the matter advised Reuters.

On Monday, Musk took a jab at Twitter’s stance, tweeting that the authorized battle would result in the corporate disclosing info on bots and spam accounts in courtroom.

The sequence of tweets was Musk’s first public response because the Friday announcement.

Twitter shares ended at $36.81 (roughly Rs. 3,000) on Friday and had been at a 32 p.c low cost to Musk’s $54.20 (roughly Rs. 4,300) bid, as they’ve been hit by a double whammy of a stoop within the broader fairness market and investor skepticism over the deal.

“We believe that Elon Musk’s intentions to terminate the merger are more based on the recent market sell-off than… Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Thill mentioned in a word.

“In the absence of a deal, we would not be surprised to see the stock find a floor at $23.5 (roughly Rs. 1,800).”

The contract requires Musk to pay Twitter a $1 billion (roughly Rs. 7,900 crore) break-up payment if he can’t full the deal for causes such because the acquisition financing falling by means of or regulators blocking the deal. The break-up payment wouldn’t be relevant, nonetheless, if Musk terminates the deal on his personal.