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

The plan must “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.” meet,” explains the group.

Twitter, which is the subject of an unsolicited takeover bid by Elon Musk, announced on Friday that it had accepted a plan to counter this offensive, aimed at preventing the Tesla boss from simply buying back his shares.

The plan must “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 adequate time to make informed decisions.” to meet,” the group said in a statement.

“poison pill”

This clause, known in financial jargon as a “poison pill”, comes into effect if the enemy shareholder exceeds 15% of the company’s shares without the approval of the Board of Directors (CA). Elon Musk owns just over 9% of Twitter’s equity at this point.

If he buys back enough shares to reach the 15%, all other share holders on the platform can buy them back at a reduced price, which would greatly increase the price the entrepreneur would have to pay to get his hands on the social Network. 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 quirky 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. During a live interview at the Ted2022 conference Thursday, he said he had “adequate funds,” assured that he had a plan B should the board decline his offer, and that he didn’t want to “make any money.”

He is highly critical of Twitter’s content moderation policy and says he wants to make it the “world’s free speech platform” with fewer restrictions on what users can tweet.

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