20220817 Elon Musk
Musk and Twitter were set to enter the courtroom this month. Image Credit: AFP

Billionaire Elon Musk is proposing to go ahead with his original offer of $54.20 a share to take Twitter Inc private, Bloomberg News reported on Tuesday, sending the shares of the social media firm surging.

Twitter shares jumped 12.7 per cent at $47.93 before trading was halted for the second time, while Tesla Inc, the electric vehicle company that Musk heads, fell about 3 per cent.

Musk made the proposal in a letter to Twitter, Bloomberg reported, citing people who asked not to be identified discussing confidential information.

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Twitter and Musk's lawyers were not immediately available for requests for comment from Reuters.

The news comes ahead of a highly anticipated faceoff between Musk and Twitter at Delaware's Court of Chancery on October 17, in which the social media company was set to seek an order directing Musk to close the deal at $54.20 per share.

Musk agreed in April to buy Twitter for $44 billion, but within weeks said the number of bot accounts was much higher than Twitter's estimate of less than 5 per cent of users.