Twitter on Friday adopted a time-limited shareholder rights plan to protect itself from billionaire businessman Elon Musk’s $43 billion all-cash takeover offer.
Musk made the offer on Wednesday. in a letter to the board of Twitterthe micro-messaging platform that has become a global means of communication for individuals and world leaders, and was made public in a filing to the regulator on Thursday.
After his TED talk on Thursday, Musk hinted at the possibility of a hostile offer in which he would bypass Twitter’s board and present the offer directly to its shareholders, tweeting: “It would be completely indefensible not to put this offer to a shareholder vote.”
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According to the plan, also known as a “poison pill” strategy to resist an offer from a potential buyerthe rights will be exercisable if someone acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the board.
The rights plan will expire on April 14, 2023, Twitter said. (Rts)