Twitter adopts plan to prevent Elon Musk from simply buying back his shares

Twitter, which is the subject of an unsolicited takeover bid by Elon Musk, announced on Friday (15.15.

The plan has to “To reduce the possibility of a company, person or group taking control of Twitter by accumulating stock in the market without paying all shareholders a reasonable premium or allowing the board of directors adequate time to make informed decisions.” »the group said in a press release.

This clause, dubbed “poison pill” in financial jargon, is triggered when the enemy shareholder exceeds 15% of the company’s stock without Board of Directors (CA) approval. Elon Musk currently owns just over 9% of Twitter’s equity.

If he buys back enough shares to reach the 15%, all other share holders on the platform can buy back at a reduced price, which would significantly increase the price the entrepreneur would have to pay to take full control of the social network .

Also read: Article reserved for our subscribers Elon Musk and Twitter, a takeover that is as political as it is economic

Very critical of the moderation policy

This Twitter announcement shows that the San Francisco-based company intends to fight this attempt by the world’s richest man to buy it out and make it an unlisted company.

The billionaire has announced a proposal to acquire the social network at a price that would value it at $43.4 billion, up from around $36 billion currently. He said Thursday he had “sufficient capital” and assured that he had a plan B in case the board rejected his offer, adding that he did not intend to do so ” Earn money “during a live interview at the Ted2022 conference.

Also read: Article reserved for our subscribers Twitter, a new frontier for libertarian entrepreneur Elon Musk

Highly critical of Twitter’s content moderation policy, he says he intends to do so “The Platform for Freedom of Speech in the World”with fewer restrictions on what users can tweet.

The world with AFP

Leave a Comment