To push into chaos by Elon Musk, Twitter passed a so-called “poison pill” on Friday to prevent the world’s richest man – or any partisans – from taking over the company.
Rights plan, as a company Press Release it is called, “will reduce the ability of any organization, individual or group to gain control of Twitter through open market accumulation without paying all shareholders an appropriate control fee ” or give the board sufficient time to consider the proposal.
The company said it could still consider a takeover bid that it believes “in the best interests of Twitter and its shareholders.”
Poison will be activated if any party gains a stake in the company greater than 15% without board approval. (Musk currently holds a 9.2% stake in the business.) At that point, other shareholders will be able to buy the stock at a set price, making it harder for the original buyer to have a controlling interest. .
Musk sent the market into turmoil this week after posting a non-binding offer to go private on Twitter at $54.20 per share — a number that’s probably not. random, consisting of the digits 420, a number commonly associated with marijuana and a repeating element of his online trolling.
Have many other reasons to question the seriousness of his takeover offer.
This story is broken and will be updated.