The device known as ‘poison pill’ complicates the acquisition of more than 15 percent of the company’s shares. The decision was made public after Elon Musk, the world’s richest man, offered $43 billion for the social network.
Twitter tries to stop the purchase of most of the company’s shares by Musk, who already owns 9%.
In a statement, the social network reported that the company’s board of directors unanimously adopted the ‘Rights Plan’ (official name of the so-called ‘poison pill’) that “aims that all shareholders obtain the value total investment” in the company.
According to the statement, the measure, which expires in one year, does not mean that the board does not accept or study the acquisition proposal.
“The ‘Shareholder 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 enough time to make informed decisions and carry out actions that defend the interests of the shareholders,” the note pointed out.
Musk, founder of space company SpaceX and chief executive of electric-car maker Tesla, noted that he would pay $54.20 a share, a 38 percent premium over the marked share price, a day before it began. to invest in Twitter.
The billionaire further stated that he had a plan B if his offer was rejected, stressing that he had enough assets to carry out the purchase should Twitter agree to his terms.
According to Reuters, a source familiar with the matter reported that the investment fund Thoma Bravo LP, an American growth capital and private equity firm, would have approached the social network to express interest in working on an alternative takeover bid. to that of South African-born businessman Elon Musk.
On April 14, the world woke up to the news that the South African billionaire launched a proposal to buy 100 percent of the shares of the microblogging company, and threatened to sell all his shares in the company if his attempt to acquisition was rejected.
“I think it is very important that there is an inclusive forum for freedom of expression,” said the tycoon in response to the question about the motivations for his offer.