Twitter has announced a plan for shareholders’ rights for a limited time, which could thwart billionaire entrepreneur Elon Musk’s attempts to take over the company.
Musk, Tesla’s chief executive and the world’s richest man, has offered to buy the $ 43.4 billion social media platform, arguing that he wants to unleash its “extraordinary potential” to support freedom of speech and democracy. worldwide.
In response, the Twitter board unanimously approved a plan Friday that would allow existing shareholders to buy shares at a significant discount to dilute the shares of new investors.
The method, known as the “poison pill” in the financial world, suggests that Twitter will fight Musk to prevent a hostile takeover. It will take effect if a shareholder acquires more than 15% of the company in a transaction that is not approved by the board and expires on April 14, 2023.
“The rights plan does not prevent the board from engaging with parties or accepting a takeover bid if the board believes it is in the best interests of Twitter and its shareholders,” a Twitter statement said.
Twitter’s response is the latest twist in the saga between the billionaire and the social network where Musk himself is an avid user. Musk revealed on April 4 that he has become the largest shareholder on Twitter, quietly grabbing a 9.2% stake in the company in recent months. He was then offered a seat on the board, a move that was suddenly reversed after Musk refused.
More details coming soon…
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