The richest man in the world, Alon Musk, bought 9.2% of the social network Twitter at the beginning of last month, which made him the largest shareholder, later, after rejecting an offer to become a board member, Musk applied to buy 100% of the social network and “release” it to the world, he said | On Twitter, they activated what is known as the “poison pill” and thus try to stop the super tycoon’s “takeover” of the company
A day after billionaire Elon Musk offered to buy the company for $ 43 billion, the company announced that the council had unanimously voted Adoption of a limited shareholder rights plan, known by experts as a “poison pill”.
Under the unanimously approved proposal, if an individual or group acquires a stake of over 15% of the company’s shares without board approval, the rest of the shareholders will be able to purchase additional holdings at a low price – thus diluting the share of the party trying to take over the company. Validity of the mechanism – until April 14, 2023. This type of tactic is common among companies that are attacked by activist investors or who find themselves in hostile takeover attempts.
Twitter said the approved plan would reduce the likelihood that an individual or group would take over the company through free market acquisitions without paying a proper control premium to shareholders and without allowing the board to take action in the interests of shareholders.
The social network clarified that the adoption of the “poison pill” will not prevent the board of directors from accepting a takeover bid – if it concludes that it serves the interests of the company and the shareholders.
Musk completed a 9.2% acquisition of Twitter earlier this month, making it the largest shareholder in the social media company. It was reported yesterday that Musk is offering to buy 100% of the company’s shares for $ 54.2 per share in cash – an 18% premium to the market price, $ 55.85. Musk noted yesterday that this is his “best and last” offer, and also stated that after completing the move he intends to turn Twitter into a private company. “There needs to be a change in Twitter as a private company,” he said. “Twitter has huge potential. I will realize it.”