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Report: Elon Musk moving forward with Twitter bid

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Trading of shares of Twitter were halted on the New York Stock Exchange Tuesday after a report that billionaire Elon Musk had submitted a new bid to purchase the social media company. Photo courtesy of Twitter
Trading of shares of Twitter were halted on the New York Stock Exchange Tuesday after a report that billionaire Elon Musk had submitted a new bid to purchase the social media company. Photo courtesy of Twitter

Oct. 4 (UPI) -- Shares of Twitter closed up more than 22% on the New York Stock Exchange Tuesday after a report that billionaire Elon Musk had submitted a new bid to purchase the social media company.

The stock price jumped to a $52 a share, yup $9.46, but fell back slightly in after-hours trading. More than 47 million shares changed hands.

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The surprise agreement would see Musk acquire Twitter at $54.20 per share, the price he originally agreed to pay for the company in April, the New York Times said, citing sources close to the deal.

However, it wasn't clear if the offer was a tactic to stall the current legal proceedings between Twitter and Musk, the Times reported.

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The deal values the company at $44 billion and could come as soon as Friday, NBC reported, according to sources.

Musk confidentially filed a letter in court Monday night, looking to move forward with the deal, Yahoo Finance reported.

Lawyers for Musk and Twitter were expected to meet in court later on Tuesday to discuss next steps, The Times reported.

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Shares of Twitter were halted at $47.93 at 12:13 pm EDT, up more than 12% on the day following news of the report. They climbed by as much as 15% at one point on Tuesday.

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Twitter sued Musk in Chancery Court in Delaware to force him to complete the deal.

Musk, the billionaire Tesla founder, first proposed in April buying Twitter, with the $44 billion price tag. It hit a snag in May when Musk said he wouldn't proceed without knowing how many phony or spam accounts are on the platform.

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He then abandoned the bid altogether in July, causing the platform's shares to drop because of the news.

Twitter has rejected claims that it has refused to provide information about the phony accounts -- and has attempted to force Musk to abide by the agreement in court.

That trial is scheduled to start in less than two weeks in Delaware Chancery Court.

The San Francisco-based company had not commented publicly on the report as of 3 p.m. EDT on Tuesday.

Musk is due to be deposed Thursday and Friday in Austin, Texas, The Times reported. It is possible that Twitter could ask for court supervision to ensure the deal goes through.

"This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. the Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another," Dan Ives, a director at investment firm Wedbush, told ABC News on Tuesday.

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