Twitter announced a measure with which it intends to delay or avoid the purchase of the company by the CEO of Tesla, Elon Musk.
The action, known in the business world as a “poison pill,” is intended to complicate the purchase of more than 15% of Twitter shares by Musk, who already owns 9% of them. Read: Musk makes offer on Twitter and hopes not to be rejected
Twitter made this decision public a day following Musk, the richest man in the world, offered 43,000 million dollars for the social network, and threatened to sell all his shares in the company if his acquisition attempt was rejected.
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According to a company statement, its board of directors has unanimously adopted the “Rights Plan”which ensures “aims that all shareholders obtain the full value of their investment in Twitter.”
“The Rights Plan will reduce the likelihood of any entity, person or group gaining control of Twitter through open market accumulation without paying all shareholders the appropriate premium for control, or without giving the board the sufficient time to make informed decisions and carry out actions that defend the interests of the shareholders”, explains the text.
Elon Musk offers $43 billion for Twitter
The founder of Tesla, the billionaire Elon Musk, launched an offer to buy the social network Twitter for 43 billion dollars, according to a letter sent to the company’s board of directors published by various media.
According to said letter, published by both CNBC and Bloomberg, Musk, considered the richest man in the world, has offered 54.20 dollars per share in cash, which represents a premium of 54% over the closing price of last January 28, the day before starting to invest in Twitter.
Read also: What’s behind Elon Musk’s bid to offer $43 billion for 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.
In the pre-opening of the Wall Street market, the shares of the social network soared this Thursday more than 12%.
“My offer is my best and final offer and if it is not accepted, I would have to reconsider my position as a shareholder,” he warned.
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