Twitter reported in a statement that its Board of Directors unanimously adopted a defense strategy known as the “poison pill” in response to Elon Musk’s purchase offer, which seeks to acquire 100 percent of the company and that the platform leave to be listed on the stock market.
This measure is formally known as a “limited duration shareholder rights plan” and is intended to allow investors to realize the full value of their investment in the firm, reducing the probability that a single person can take control. without paying shareholders or giving the board more time.
“The rights plan will reduce the likelihood that any entity, person or group will gain control of Twitter through open market accumulation without paying all shareholders an adequate control premium or without providing the board with sufficient time. to make informed judgments and take action that is in the best interest of shareholders,” the company said in a statement.
The “poison pill” defense is frequently used to defend against a hostile takeover, which is what Elon Musk would plan, according to analysis by various experts.
This announcement was made a day after the tycoon launched a $43 billion offer to keep 100 percent of the company. A few weeks ago, the businessman bought 9.2 percent of Twitter for a figure close to $ 2,900 million dollars, for which he became the main shareholder of the company.
At that time, Musk shared his wishes to be part of the board of directors, something that ultimately did not materialize.