Twitter board adopts poison-pill plan to defend against Elon Musk’s takeover

The Twitter board announced the unanimous adoption of a plan to protect shareholder rights following Elon Musk’s proposal to acquire the social network.

According to the company’s statement, the initiative aims to realise the full value of investors’ stake in Twitter. The plan will run until 14 April 2023.

The defensive tactic known as a “poison pill” (poison pill) is designed to protect the company from unwanted takeovers.

The plan allows shareholders to buy additional corporate shares at a discount in the event that any entity or individual acquires 15% of Twitter’s shares without the board’s approval.

The move is intended to “dilute” the stake of a potential buyer to make the takeover less attractive.

In April, Musk became the company’s largest shareholder after the purchase of 9.2% of shares for $2.89 billion. He proposed lowering the price of Twitter Blue and adding a payment in Dogecoin (DOGE).

On April 14, Musk proposed to buy Twitter for more than $43 billion. He said this was aimed at creating an “inclusive arena for free speech”, rather than to make money.

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