Rights under the ‘poison pill’ strategy will become exercisable if a person acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board.
Rights under the ‘poison pill’ strategy will become exercisable if a person acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board.
Twitter Inc. adopted a limited-term shareholder rights plan on 15 April To protect yourself from billionaires entrepreneur Elon Musk’s $43 billion cash takeover offer,
Mr. Musk bids in a letter to the board of Twitter on April 13 – the micro-blogging platform that has become a global means of communication for individuals and world leaders – and was made public in a regulatory filing on April 14.
After his TED talks on April 14, Mr. Musk indicated that possibility of hostile bidding In which he bypassed Twitter’s board and proposed the proposal directly to his shareholders, tweeting: “It would be completely unforgivable not to put this proposal to the shareholder vote.”
Under the plan, also known as the ‘poison pill’ strategy, to oppose a bid from a potential acquirer if an individual owns 15% or more of Twitter’s outstanding common stock in a transaction not approved by the board. acquires ownership, the rights shall become exercisable.
The rights scheme will end on April 14, 2023, Twitter said.