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US: Lawsuits delay $2.6 billion Tesla merger with SolarCity

By  |  September 19, 2016

Elon Musk-led Tesla Motor said on Monday its proposed acquisition of SolarCity could be delayed due to shareholder lawsuits challenging the deal.

The company said four lawsuits were filed in Delaware between Sept. 1 and Sept. 16 and a potential injunction on the proposed $2.6 billion merger could delay the closing of the deal.

The lawsuits allege, among other things, that both Tesla and SolarCity board members breached their fiduciary duties in connection with the proposed $2.6 billion merger, which the companies expect to close by the end of the year.

“Simply because someone uses litigation to try to delay an acquisition does not mean it will be successful,” Tesla said in an emailed statement. “At this point, it is not yet known if anyone will even end up pursuing such a request. If anyone does, Tesla will oppose it.”

Full Content: The Wall Street Journal

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