Tesla's $2.3 billion merger with SolarCity could be put on hold due to shareholder lawsuits report The Wall Street Journal's Cassandra Sweet and Susan Pulliam.
The merger was scheduled for this week, but four lawsuits were filed on Monday alleging that Tesla's board "failed to carry out their fiduciary duties involving the proposed merger, and that insiders would be unjustly enriched by the companies’ combination."
“Simply because someone uses litigation to try to delay an acquisition does not mean it will be successful,” Tesla said. “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.”
SolarCity shares have plummeted by two-thirds this year and closed Monday at $17.23—a significant discount to the implied Tesla deal price of about $22 a share—as some Wall Street analysts questioned whether the merger will happen.