Twitter launches ‘poison pill’ to thwart $43bn bid by Elon Musk

1 min


163
104 shares, 163 points

Twitter has launched a “poison pill” takeover defence to fend off a $43bn hostile bid from billionaire Tesla chief executive Elon Musk.

In a statement on Friday, the social media company said that its board of directors had “unanimously adopted” a limited duration shareholder rights plan to “enable all shareholders to realise the full value of their investment in Twitter”, which will last for a year.

Under the plan, if a group or individual acquires more than 15 per cent of Twitter’s shares “in a transaction not approved by the board”, then other shareholders will be able to buy additional shares at a discount.

Such a plan makes it more difficult for a hostile bidder, as they would have to buy more shares to gain control.

The announcement comes after Musk offered $54.20 a share in cash for Twitter, valuing the company at $43.4bn, days after he took a 9 per cent stake in the company to become one of its largest shareholders.

Source: Financial Times


Like it? Share with your friends!

163
104 shares, 163 points

What's Your Reaction?

Cute Cute
2
Cute
Fun Fun
21
Fun
Hate Hate
17
Hate
Confused Confused
5
Confused
Fail Fail
27
Fail
Geeky Geeky
18
Geeky
Love Love
10
Love
OMG OMG
5
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format