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Elon Musk is threatening to pull out of the $44 billion Twitter buyout if the company doesn’t provide more information on how it calculates the number of fake accounts.

In a letter sent to Twitter on Monday, and submitted to the Securities and Exchange Commission, Mr Musk’s lawyers at the law firm Skadden, Arps, Slate, Meagher & Flom argued that Twitter “actively resisted and blocked” Mr Musk’s rights under the deal to buy the social media company. His lawyers accused Twitter of “clearly breaching” its obligations, saying that as a result Mr. Musk had the right to break the deal.

The letter said Mr Musk had “repeatedly” requested more information about how Twitter measures spam and fake accounts on its platform, and has “made clear that the company does not believe its loose testing methodologies are sufficient and therefore should conduct its own audit.” analysis.”

The letter contained the most direct words yet about Mr Musk potentially shelving the deal, something he had so far indirectly suggested he could do through tweets and other unusual statements. The letter also presents a new legal argument to withdraw from the agreement and opens a new front, which is increasingly tough back and forth.

The letter said Twitter’s cooperation is needed to secure the debt financing the banks have committed to fund the deal. Morgan Stanley and other lenders 13 billion dollars He’s in debt to help pay for Mr. Musk’s takeover. A Morgan Stanley spokesperson did not immediately respond to a request for comment.

The letter stated that Twitter’s response to previous questions from Mr. Musk’s team, which gave more details about the methodology the company uses to measure fake accounts, was “equivalent to rejecting Mr. Musk’s data requests.”

“Twitter has continued and will continue to share information in collaboration with Mr. Musk to complete the transaction in accordance with the terms of the merger agreement,” a Twitter spokesperson said in a statement. “We believe this deal is in the interest of all shareholders. We aim to close the transaction and enforce the merger agreement at the agreed price and terms.”

Twitter’s stock opened lower on Monday, but is still well below the $54.20 price set in the deal agreed with Mr. Musk, before regaining some ground to trade at around $39.50 per share.

Mr. Musk’s displeasure at Twitter’s monitoring of fake accounts coincided with a market plunge that dragged shares of tech companies and electric vehicle company Tesla, the billionaire’s main source of wealth, down. The turmoil has also hit credit markets, potentially making it harder for banks to sell the increased debt to finance the takeover. Analysts estimate that these factors caused Mr. Musk to regret spending $44 billion on the social media company..

Musk, who signed a deal to buy Twitter in April, has threatened to put the deal “on hold” in recent weeks due to the number of fake accounts. Last month he tweeted:agreement cannot proceed.Until we show “proof” that these accounts make up less than 5 percent of its users, as Twitter has repeatedly said. He made similar remarks at a conference in Miami, noting that he may be trying to lay the groundwork for reworking the deal.

In doing so, Mr. Musk appeared to be making a case for claiming that Twitter is experiencing a “material negative change” or change that could significantly affect his business and allow him to break the deal. Legal experts have questioned the merits of this argument, especially since Twitter has long declared that fake accounts represent about 5 percent of its users. Mr. Musk’s letter on Monday represented a new strategy.

“What he’s actually done is a much smarter attempt to get out of the merger deal,” said Ann Lipton, professor of corporate governance at Tulane Law School. “If Twitter really puts a barrier on requests for information, and if those requests were necessary or reasonable for Musk to receive his funding – which is what he claims in this letter – then that would likely be a breach that allowed Musk to walk away.”

Twitter, in turn, could argue that it did not have the information Mr Musk requested or that it was not necessary for closing the deal, it said.

“The merger agreement provides information with exceptions, but that doesn’t mean he can get any information he wants,” said Edward Rock, professor of corporate governance at the New York University School of Law. “What I don’t know is what information he wants.”

A deal is expected to be completed by October 24. If it doesn’t close by then, both parties can go away. If the transaction is delayed by regulatory approvals at the time, Mr. Musk and Twitter will have another six months to close the transaction.

Last week Twitter announced got regulatory permission From the Federal Trade Commission to continue the deal. Last month, Mr. Musk announced in a file He said he increased his personal cash commitment to the deal and canceled a scheduled loan against Tesla’s stock. Mr. Musk He said he was talking to other Twitter shareholders, Including the company’s co-founder and former CEO, Jack Dorsey, on transferring their existing shares to the company after going private rather than selling their shares as part of the deal.

For Twitter, completing the deal is existential. The company’s stock price is heavily supported by Mr. Musk’s deal to buy the company for $54.20 per share, and he will risk a major downturn if the deal breaks down.

Executives at the company insist that Twitter has a bright future despite struggling in recent years. Parag Agrawal, CEO of Twitter, in the middle of a tough turn cutting discretionary spending and freezing new hires. Since Taking over in NovemberMr. Agrawal has challenged previous heads of product and revenue to set up their own leaders and has plans for more change, in the shadow of even greater change, as he tries to realize his vision in the months ahead. company.