statement.Twitter said its board of directors “unanimously adopted a limited duration shareholder rights plan” after the unsolicited offer from Musk this week to acquire the company.
The rights plan will expire on April 14, 2023.“The Rights Plan is similar to other plans adopted by publicly held companies in comparable circumstances,” the statement continued. “Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board.”Known as the poison pill, it is a tactic companies use in hostile takeovers to let it offer new shares or shares at a discount to other buyers and shareholders.
Twitter could use this while the board considers Musk’s proposal and any other potential offers, Mandeep Singh, analyst at Bloomberg Intelligence, previously told TheWrap.“It is unclear whether the board officially asks or requests Elon to give a formal proposal on the changes that he wants to make in the company,” Singh said.
This comes as the Tesla boss on Wednesday filed paperwork offering to buy Twitter for $43 billion in cash after acquiring a 9.2% stake in the company earlier this month..
Read more on thewrap.com
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