Twitter has rolled out a poison takeover defense to combat a $43 billion hostile offer from billionaire Tesla chief Elon Musk.
In a statement on Friday, the social media company said its board of directors unanimously approved a term shareholder rights plan to “enable all shareholders to realize full value.” of their investment in Twitter,” the plan will last for a year.
Under the plan, if a group or individual buys back more than 15% of Twitter’s shares “in a transaction not approved by the board,” other shareholders will be able to buy more 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.
Musk offers $54.20 a share in cash to Twittervalued the company at $43.4 billion, days after he took a 9% stake in the company to become one of the company’s largest shareholders.