Twitter announced on Friday that it had decided to use a limited shareholder rights program, known as the "poison pill," in response to Tesla CEO Elon Musk's $ 43 billion acquisition over the past day - as a communications company prepares to face potential enemies. . Go ahead.
Twitter's board of directors unanimously voted to approve a shareholding rights program, often referred to as a "poison pill," which is often used to curb asset losses by reducing shares.
Under the new system, if any shareholder earns more than 15% on Twitter without board approval, other shareholders will be allowed to add to their posts at a discounted price.
The program, “similar to other programs undertaken by companies kept public under the same circumstances,” expires on April 14, 2023.
Twitter is clearly preparing to oppose any unauthorized takeover, with the decision coming a day after Tesla billionaire Elon Musk made an unsolicited $ 43 billion bid to buy a social media company and make it private.
The board noted that the poison pill would not prevent it from accepting future offers, as long as it was considered "of great benefit to Twitter and its shareholders."
CRUCIAL QUOT:
“The Bill of Rights will reduce the likelihood that any company, individual or group will gain control over Twitter by accumulating open markets without paying all shareholders the appropriate controls or without giving the Board enough time to make informed decisions and take the best possible action. the interests of shareholders, ”the company said in a press release.
WHAT TO LOOK FOR:
Several Wall Street analysts recently downgraded Twitter, warning that Musk's bid bid put the company in a difficult position. Stifel was one of the first to issue a sell-off on Twitter shares during "Elon's circled air circulation," with KeyBanc analysts warning that the bid could "rise in smoke" and could be traded if Musk decides to withdraw money.
