Washington: The social networking platform company Twitter launched a plan to prevent American billionaire Elon Musk from buying a majority of its shares following he made a non-binding offer to buy all of the company’s shares for $43 billion.
In response to the acquisition offer from Musk, the board of directors of Topter adopted a plan known as the “poison pill” that makes it difficult for Musk to increase his stake in the company more than 15% during a specified period of time, while Musk currently owns 9.4 percent of the company’s shares.
Twitter said in a statement that “the board of directors adopted the shareholders’ rights plan following the arrival of a non-binding offer to acquire Twitter.”
The rights plan expires on April 14, 2023.
The rights plan reduces the possibility of any entity, person, or group acquiring a controlling share of Twitter shares through the cumulative purchase of its shares on the open market, without paying a price higher than the market price of the share to all shareholders, or without giving the board of directors sufficient time to reach a sound decision and take The necessary steps to achieve the interests of shareholders.
The CEO of Twitter had informed the company’s employees that the board of directors was still evaluating the offer of American billionaire Elon Musk to acquire it.
Informed sources said that Parag Agrawal’s statements came during a meeting with the company’s employees last Thursday in response to questions regarding the possible scenarios of the acquisition deal.
The sources stated that the tone of Agrawal’s speech was neutral and that he did not reveal the direction of the Twitter board of directors regarding the acquisition deal, and that he added that determining the best decision in the interests of shareholders is a “strict process.”
It is reported that the American billionaire, Elon Musk, the president and owner of the American electric car maker “Tesla”, offered to buy all the shares outstanding on the social networking platform Twitter.
Musk sent a letter to Twitter containing a non-binding proposal to purchase all of the outstanding common shares that he does not own, in full cash, and value the common stock at $54.20 per share.
“Twitter needs to be turned private,” Musk said. As a result, I bid 100% of Twitter for $54.20 per share in cash, a 54% difference in value from the day before my investment in Twitter, and 38% in value from the day before my investment was publicly announced. My offer is the best I have and it is my last offer, and if it is not accepted, I will need to reconsider my position as a shareholder.”
(dpa)
