Elon musk twitter poison pill
Now that US micro-blogging company Twitter is pulling all stops to protect itself from hostile takeover bids thanks to billionaire Elon Musk’s hostile takeover bid, the network has announced a poison pill plan that would gain control for this Tesla CEO. It has become difficult to do.
Stake in Twitter Now Two weeks ago the world’s richest man Elon Musk announced his more than nine percent stake in the company, while this week he offered to buy the entire company in a $43 billion cash deal, to buy the company. The unsolicited bid by Elon Musk sent him in complete shock.
Although Elon Musk’s proposed buyout at this point faces a number of threats, including potential rejection. Raising funds is another challenge, but could have a significant impact on the leading social media service if it is acquired. .
Now the Twitter board has jointly adopted one—called the Shareholder Rights Scheme, also known as the poison pill—in which the plan begins and investors 15per. Elon Musk’s Elon Musk owns nine percent of Twitter’s shares without an agreement of directors.
He is the largest shareholder after the mutual fund grand vanguard, a measure that makes it difficult for the buyer to manufacture a stake without board approval. If the stake is too large, the plan would allow other shareholders to sell more shares at a discounted price, this would eventually lead to new investors. weakens its holders.
The poison pill will remain in place for 364 days, with experts hailing the measure as a powerful tool for corporate raiders. Doesn’t stop me from agreeing that Elon Musk hasn’t addressed the poison pill directly.
But has tweeted that Titanic’s board will face legal liability if it goes against the interests of shareholders in rejecting his offer. Elon Musk also tweeted that Twitter shareholders should have their say on his offer.
He posted a poll on Twitter that most users agreed with. Musk also said he would reconsider his position as a Twitter shareholder in addition to Thomas Bravo, a technology-focused private equity firm, if the bid is rejected. .
The former Bravo has also informed Twitter that it is exploring the possibility of putting together a bid. It is now possible for a private equity firm to partner with him to promote Musk’s bid. Used to assess Elon Musk’s bid and draft his response