Twitter’s board has officially launched its poison pill plan to fend off Elon Musk’s $43 billion takeover. This means that shares may be offered at discounts to dilute the stake of hostile parties.
Well, there you have it, folks. Twitter’s board is effectively turning down Elon Musk’s takeover bid of $43 billion to acquire the whole company. As we discussed this morning, the board was considering two strategies, the first was a poison pill defense and the second was just telling Musk that his offer is too low – despite it being at a 54% premium. Now, the Twitter board has officially gone with the former option. As we discussed a few hours ago, a poison pill defense is also referred to as the « shareholder rights plan » and is a safety net to prevent hostile takeovers.
