Twitter said Friday it adopted a “poison pill” plan that could prevent billionaire Elon Musk from significantly increasing his stake in the social media company. The countermeasure comes a day after Tesla CEO Musk introduced one $ 43 billion hostile bid for Twitter.
In a statement, Twitter said the new plan would reduce the chances that anyone, group or company could take control of Twitter by buying shares on the open market without paying “an adequate control premium” or giving enough time to the board. “to make informed judgments.”
The plan will take effect if any person or group buys at least 15% of Twitter shares in a purchase that is not approved by their board.
If triggered, the plan would give other shareholders the right to buy additional shares of Twitter shares at a discount, which would dilute the value of Musk shares. This would effectively reduce the control that Musk could gain by buying shares.
Twitter said the plan does not prohibit its board from accepting an acquisition proposal if it believes it “is in the best interests of Twitter and its shareholders.”
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