Twitter embraces ‘toxin tablet’ to combat Elon Musk takeover
Twitter Inc on Friday adopted a limited-duration investor rights strategy to safeguard itself from billionaire business owner Elon Musk‘s $43 billion money takeover deal.
Musk made the bid on Wednesday in a letter to the board of Twitter- the micro-blogging platform that has become a worldwide ways 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’s board and put the offer straight to its shareholders, tweeting: “It would be entirely indefensible not to put this offer to a shareholder vote.”
Under the plan, also called a ‘poison pill’ technique to resist a quote from a potential acquirer, the rights will become exercisable if anybody obtains ownership of 15% or more of Twitter’s exceptional common stock in a deal not approved by the Board.
The rights plan will expire on April 14, 2023, Twitter said.
Published at Fri, 15 Apr 2022 16:37:18 +0000