Twitter will go for ‘poison pill’ to prevent Elon Musk from taking power: Details TOU

Twitter will go for ‘poison pill’ to prevent Elon Musk from taking power: Details


Twitter will go for ‘poison pill’ to prevent Elon Musk from taking power: Details

To thwart attempts by billionaire investor-researcher Elon Musk to take over the company, Twitter Inc. Adopted a measure that would protect it from adverse acquisition bids.

Two days after Elon Musk offered to buy a 100 percent stake in Twitter Inc. to privatize the company and make it a stronghold of independent speech, the board of Twitter Inc. Come up with a new plan To ensure no one has control over Twitter through open market accumulation of stocks.

The company has adopted a “poison pill” strategy in which its rights can be exercised if one acquires 15% or more of Twitter’s stock in a transaction not authorized by the board. Micro-blogging tech company has implemented a short-term shareholder rights plan to protect itself from billionaire entrepreneur Elon Musk’s $ 43 billion cash takeover offer.

The plan seeks to ensure that any shareholders who take control of Twitter through Open Market Accumulation pay a fair control premium.

“If the board believes it is in the best interests of Twitter and its shareholders, the rights plan does not prevent the board from engaging with the parties or accepting the acquisition proposal,” the company said.

The Poison Peel Defense Strategy gives existing shareholders the right to purchase more shares at a discounted price, which diminishes the proprietary interest of the adversary. Toxic pills are common in companies when dealing with adverse takeover situations.

According to Twitter officials, Twitter had adopted this strategy to buy time so that they could analyze and negotiate any deal. They could still accept Elon Musk’s offer, an insider said.

Elon Musk offers to buy Twitter, Saudi prince refuses

On Thursday, Elon Musk, chief executive officer of Tesla Inc., offered to buy Twitter for $ 54.20 per share in cash, valued at $ 43 billion by the social media company. In its SEC disclosure, Musk said it had made its “best and final” offer since gaining more than 9% stake in Twitter earlier this year.

In response, Twitter’s board met on Thursday to review Musk’s proposal, saying it was in the best interests of the company and all of its shareholders.

However, hours after Tesla CEO Elon Musk offered to buy a 100% stake in Twitter, Saudi billionaire businessman Al-Walid bin Talal refused to sell his 5.2% stake in the micro-blogging platform. Talal cited Twitter’s future growth prospects and low share price to turn down Elon Musk’s offer.

Amid all the noise, Vanguard Funds, an American investment advisor registered in Malvern, Pennsylvania, replaced Elon Musk as Twitter’s largest shareholder on Friday. Vanguard Funds increased its holdings on Twitter to 10.3% of the social media giant’s stock, making it the company’s largest shareholder.

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