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.

Musk made the offer on April 13 in a letter to Twitter’s board of directors and his offer price of $54.20 per share was disclosed in a regulatory filing. That’s a 38% premium to Twitter’s April 1 close. April 1 was the last trading day before Musk’s more than 9% stake in the company went public

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)


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