Twitter adopted a limited duration shareholder rights plan, often called a “poison pill,” essentially that would block or delay billionaire Elon Musk’s bid to buy the company for $43 billion. The board voted unanimously to adopt the plan.
The plan is set to expire on April 14, 2023.
“The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders,” the company said in a press release.
If he had joined, Musk would not be allowed to accumulate more than 14.9% of beneficial ownership of the company’s outstanding common stock.
Much more to come on this story so stay tuned.