Poison Pill: Twitter Board Enacts Plan to Block Takeover by Elon MuskAllum Bokhari 15 Apr 2022
Twitter’s board of directors is deploying defensive measures to prevent Elon Musk, the world’s richest man and a declared free speech absolutist, from taking over the company.
The pro-censorship, leftist-run social media platform has adopted a Shareholder Rights Plan, a corporate tactic used to deter buyouts.
Colloquially known as a “poison pill,” the measure allows existing shareholders to buy more shares at a discounted price, diluting the stake of any shareholder seeking to acquire the whole company and theoretically raising the costs of doing so.
In a press release, Twitter said the limited duration Rights Plan, which will be triggered if Musk’s share grows to 15 percent or more, be in effect until May of 2023, “will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation.”
The Rights Plan is intended to enable all shareholders to realize the full value of their investment in Twitter. The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders.
The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders.
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https://www.breitbart.com/tech/2022/04/15/poison-pill-twitter-board-enacts-plan-to-block-takeover-by-elon-musk/