Twitter announced this Friday a measure with which it intends to delay or prevent the purchase of the company by the CEO of Tesla, Elon Musk.
The action, known in the business world as a “poison pill,” is aimed at complicate Musk’s purchase of more than 15% of Twitter shareswhich already owns 9% of them.
Twitter made this decision public a day following Musk, the richest man in the worldoffered 43,000 million dollars by the social network, and threatened to sell all his shares in the company if his acquisition attempt was rejected.
According to a company statement, its board of directors has unanimously adopted the “Rights Plan”, which ensures “aims that all shareholders get the full value of their investment and Twitter ”.
“The Rights Plan will reduce the likelihood that any entity, person or group gain control of Twitter through open market accumulation without paying all shareholders the appropriate premium for control, or without giving the board sufficient time to make informed decisions and carry out actions that defend the interests of shareholders, ”explains the text.
This measure, which is considered legal and expires in one year, does not mean that the council cannot accept or contemplate a proposed acquisition of the company, the statement specifies.
After receiving Musk’s offer on Thursday, Twitter already said it had to analyze it and raised the use of this “poison pill,” according to the Wall Street Journal.
Meanwhile, the South African billionaire said in a talk that he had a plan B if his offer was rejected, and insisted that it has enough assets to finance the purchase, so it might go ahead if Twitter’s board agreed to its terms.
With its acquisition, Musk offers $54.20 per share, which represents a premium of 54% over the closing price of last January 28, the day before he started investing in Twitter.
Likewise, it supposes a premium of 38% with respect to the price of the shares one day before its investment in the social network was publicly announced.
Among the reasons why Twitter resists Musk’s attempt to take it over is because it believes that the tycoon would introduce changes that would affect the company’s raison d’être. The millionaire has questioned some actions of that firm, such as the cancellation of Donald Trump’s account -for encouraging the hostile takeover of the Capitol-, alleging that Twitter no longer respect freedom of expression.
