“Twitter is trying to smother Elon Musk”abstract NPR. On Friday, the social network announced a plan to defend its shareholders which will singularly complicate the task of Elon Musk in his conquest of the firm with the little blue bird.
The chosen tactic is that of “poison pill”which should allow “reducing the possibility that any entity, person or group will take over Twitter by accumulating securities in the market without paying all shareholders an appropriate premium or without giving the board of directors sufficient time to take action. informed decisions”explained the company, quoted by TechCrunch.
According to the plan, if Elon Musk – who today owns just over 9% of the capital of Twitter – were to acquire more than 15% of the company, “Twitter would flood the market with new shares that all shareholders except Mr. Musk could buy at a discount”details the New York Times.
“It would immediately dilute Mr. Musk’s stake, and make the acquisition of the company much more expensive”since there would be more shares on the market, and that the multi-billionaire would have to pay the price per share promised in his offer to purchase – ie 54.20 dollars.
The tactic of “poison pill” was born “in the 80s”pour “protect companies from financial predators”tell it Financial Times. But it is often attacked in court “and most studies show that while it can slow down a hostile takeover bid, it usually does not prevent a final deal after negotiations”observes the economic daily.
“Final offer”
The plan announced on Friday was put in place for one year and “will likely complicate and delay a potential acquisition by Musk, without ruling it out altogether”analyse NPR. On the other hand, it forces him to discuss and negotiate directly with the board of directors.
Edward Rock, an expert in corporate governance interviewed by American public radio, also believes that the “poison pill” constitutes “a temporary dam” pour Elon Musk. “It gives the board time to consider the offer, decide if it’s a good idea to sell the company, and if they want to sell, whether Musk is the best choice or not.”.
But whatever its effects in the short or medium term, the adoption of the plan “clear signal that Twitter’s board intends to defend against Elon Musk’s takeover bid”judge The Verge.
Tesla boss has yet to react to Twitter’s counterattack, but it could seriously chill his ambitions, says The country. The Madrid daily recalls that Elon Musk himself clarified on Thursday that in the event of refusal by shareholders, “that he would not raise his offer to $54.20 per share. This is his final offer”.
But Musk’s offensive could be emulated. “Other entities, like private equity firm Thoma Bravo, could step into the arena and spark a bidding battle”reports Quartz. “Furthermore, Musk is no longer Twitter’s largest shareholder. The title goes to Vanguard Group, which today owns 10.3% of the company.specifies the site.