Twitter offers ‘poison pill’ strategy to defeat Elon Musk takeover bid

Twitter Inc. proposed a “poison pill” strategy on Friday to thwart a $43 billion cash takeover bid by billionaire entrepreneur Elon Musk.

Consistent with the “poison pill” strategy, the rights will become exercisable if someone acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the board of directors.

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

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

Just days ago, Musk rejected a seat on Twitter’s board.

(Edited by : Sudarsanan Mani)