Twitter Adopts ‘Poison Pill’ To Shield Elon Musk Takeover, But Tesla CEO Not Giving Up Yet
Elon Musk and Twitter Row: Twitter and Tesla CEO Elon Musk are keeping no stones unturned on the latter’s acquiring of the microblogging site. The company has now announced a ‘poison pill‘ strategy to defend itself from Musk’s $43 billion hostile takeover bid. The move would allow Twitter Inc. to keep at bay Musk’s hostile bid to make the company private and promote “free speech” on the platform.
In a move that sent shockwaves across the world, Elon Musk placed an unsolicited bid to buy Twitter Inc. for $43 billion, stating the promotion of freedom of speech on the microblogging site as a key reason for what he called his “best and final offer.” In a filing with the Securities and Exchange Commission (SEC) made public on the day, Musk offered $54.20 a share to stakeholders in order to buy the company and later spoke of a “plan B” if the offer does not go as planned.
The Twitter retaliating “rights plan” kicks in if a buyer takes 15 per cent or more of Twitter’s outstanding common stock in a transaction not approved by the board. Twitter didn’t disclose the details of its poison pill Friday, but said it would provide more information in a forthcoming filing with the Securities and Exchange Commission, which the company delayed because public markets were closed Friday.
Musk last week disclosed a purchase of 73.5 million shares or 9.2 per cent of Twitter’s common stock, an announcement that sent its shares soaring more than 25 per cent. He was offered a seat on the company’s board, which he declined, and instead placed a bid to buy the company on Thursday. However, some investors have already spoken against the proposal, including businessman and Saudi Prince Alwaleed bin Talal.