Morgan Stanley, Bank of America subpoenaed by Twitter in legal battle with Elon Musk

Yahoo Finance's Alexis Keenan details which banks have been subpoenaed by Twitter in their legal battle with Tesla CEO Elon Musk.

Video Transcript

SEANA SMITH: And Alexis, while we have you on set, I also want to bring up some breaking news that we've gotten over the last couple of minutes or so. Morgan Stanley, Bank of America are being subpoenaed by Twitter in its fight with Elon Musk. What's going on?

ALEXIS KEENAN: Yeah, so to be expected, right, the parties are now in the phase of the litigation where they're going to have to exchange a lot of information. So Bloomberg is reporting that these subpoenas are out. I haven't had a chance to look at them yet.

But what they are asking for of various communications between Musk and the banks that he was looking to for financing. Reportedly, Morgan Stanley, the lead advisor that had pledged up to $5.5 billion to Musk, is in these subpoena requests, as are communications between the parties, Bank of America, Barclays, BNP, Citigroup, and other banks as well.

Now, I do want to point out, though, that one of the things they might be looking for is something that Musk's lawyers wrote in the termination to-- termination letter to Twitter trying to kill this deal. And what they say is that this bot information that is at the heart of the disagreement that Musk says he needs, what they say is that that information is necessary to consummate the transactions contemplated by the merger because it's needed to facilitate Musk's financing and financial planning for the transaction.

So, certainly, Twitter is going to want to see if that is true. They're going to want to know is there something about this boot information that is tied up as some sort of contingency for financing. And Twitter, so far, has argued, no, that's not the case. It's not in the merger.

DAVE BRIGGS: It didn't appear to be in those early contracts we heard about. Five days in Delaware is going to be a good one.

ALEXIS KEENAN: It certainly is.

DAVE BRIGGS: Thank you, Alexis. Good stuff.

ALEXIS KEENAN: Things are heating up.