Latest News

Twitter adopts ‘poison pill’ as challenger to Musk emerges


© Reuters. Elon Musk’s twitter account is seen on a smartphone in front of the Twitter logo in this photo illustration taken, April 15, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) -Twitter Inc on Friday adopted a limited-duration shareholder rights plan to protect itself from billionaire entrepreneur Elon Musk’s $43 billion cash takeover offer.

Musk made the bid on Wednesday in a letter to the board of Twitter- the micro-blogging platform that has become a global means of communication for individuals and world leaders – and it was made public in a regulatory filing on Thursday.

After his TED talk on Thursday, Musk hinted at the possibility of a hostile bid in which he would bypass Twitter (NYSE:TWTR)’s board and put the offer directly to its shareholders, tweeting: “It would be utterly indefensible not to put this offer to a shareholder vote.”

Under the plan, also known as a ‘poison pill’ strategy to resist a bid from a potential acquirer, the rights will become exercisable if anyone acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board.

The rights plan will expire on April 14, 2023, Twitter said.

Twitter adopts ‘poison pill’ to fight Musk takeover

Here’s What Elon Musk Can Do if Twitter Rejects His $43 Billion Bid

Previous article

Analysis-Elon Musk deals Twitter a wild card as shareholders seek reforms

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News