Elon Musk and Twitter Row: Twitter and Tesla CEO Elon Musk are leaving no stone unturned in their subsequent acquisition of the microblogging site. The company has now ‘announced’poison pillA strategy to protect itself from Musk’s $43 billion hostile takeover bid. this move will allow Twitter Inc., To keep off Musk’s hostile bid to make the company private and promote “free speech” on the platform.
Twitter said the move, formally called the Limited Term Shareholder Rights Scheme, “aims to enable its investors to realize the full value of their investment in the company, by reducing the likelihood that any individual Shareholders can gain control without paying a premium. Board more time.” Poison pills are often used to defend against a hostile takeover. “The Rights Plan does not preclude the Board from engaging with the parties or accepting a takeover offer if the Board believes it is in the best interest of Twitter and its shareholders,” Twitter said.
In a move that shook the whole world, Elon Musk made an unsolicited bid to buy Twitter Inc. for $43 billion, citing a major reason for promoting freedom of speech on the microblogging site, which he called his “best and final offer”. SEC) went public that day, Musk offered stakeholders $54.20 per share to buy the company and later spoke of a “Plan B” if the offer didn’t go according to plan.
Twitter counters the “rights plan” if a buyer takes 15 percent or more of Twitter’s outstanding common stock in a board-approved transaction. Twitter did not disclose details of its poison pill on Friday, but said it would provide more information in an upcoming filing with the Securities and Exchange Commission, which the company delayed because the public markets were closed on Friday.
However, while Musk did not immediately react to the move, the New York Post quoted sources as saying in a report, the Tesla CEO spoke to investors who could partner with him in taking over Twitter. It could be announced within a few days, a report said, as a source revealed that one of the possibilities was “working closely with private-equity firm Silver Lake Partners, which in 2018 Was planning to co-invest with him when he was considering taking Tesla private.”
Musk last week revealed his purchase of 73.5 million shares, or 9.2 percent of Twitter’s common stock, an announcement that saw his shares rise more than 25 percent. He was offered a seat on the company’s board, which he declined, and instead made a bid to buy the company on Thursday. However, some investors have already spoken out against the proposal, including businessman and Saudi Prince Alwaleed bin Talal.
(with inputs from agencies)
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