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Twitter board takes action to fights Musk bid

Twitter’s board has armed itself against a possible hostile takeover – a day after billionaire Elon Musk made a $43bn offer to buy the platform, the BBC reports.

It has adopted what is known as a “limited-duration shareholder rights plan”, also known as a “poison pill.”

The move will prevent anyone from having more than a 15% stake in the company.

It does this by allowing others to buy additional shares at a discount.

The Twitter board detailed its defense plan to the US Securities and Exchange Commission and put out a statement saying it was needed because of Mr Musk’s “unsolicited, non-binding proposal to acquire Twitter.”

A takeover bid is considered hostile when one company tries to acquire another against the wishes of that company’s management – in Twitter’s case, its executive board.

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