Twitter adopts ‘Poison Pill’ defense against Elon Musk takeover

India

oi-Deepika S

New Delhi, Apr 16: Twitter defended itself from hostile acquisition bids by billionaire Elon Musk’s unwelcome provide to take the corporate non-public and make it a bastion of free speech.

Twitter, in a press release, mentioned its board of administrators has unanimously adopted a “poison capsule” defence in response to Tesla CEO Elon Musk’s proposal to purchase the corporate and take it non-public.

What’s it?

A poison capsule is a method utilized by firms, which makes it tough for a hostile acquirer to purchase out a majority stake within the firm, given the acquirer management over its administration and shareholding. On this coverage, all current shareholders can be given the fitting to buy further shares at a reduction, successfully diluting the possession curiosity of the hostile occasion.

Underneath Twitter’s plan, every proper will entitle its holder to buy, on the then-current train worth, further shares of widespread inventory having a then-current market worth of twice the train worth of the fitting.

Why is Musk keen on Twitter?

Ostensibly as a result of the service, he says, is not residing as much as its potential as a “platform totally free speech.” Musk insists that he isn’t keen on creating wealth off Twitter and on Thursday mentioned his motivation sprang from the conclusion that “having a public platform that’s maximally trusted and broadly inclusive is extraordinarily