Providence, RI (AP) – Twitter announced Friday that its board of directors has unanimously accepted the protection of “poison pills” in response to Tesla CEO Elon Musk’s proposal to buy the company and privately adapt it .
Twitter said the move, officially called the “Limited-Time Shareholder Rights Plan,” aims to “make its investors realize the full value of their investment” by reducing the likelihood that someone will gain control over company without paying shareholders. . Bonus or give more time in the forum. Poison pills are often used to protect against evil conquests.
The Twitter plan will be activated if Musk’s 9% stake increases to 15% or more. Musk could still run the company into a puppet battle, too, by voting for the current directors. Twitter said the plan would not prevent the board from joining parties or accepting a takeover offer if it was in the company’s “best interest”.
Twitter revealed in a security filing on Thursday that Musk had offered the company more than $ 43 billion in acquisitions, saying the social media platform “had to be turned into a private company” to gain trust. of the customer.
“I believe that free speech is a social imperative for a functioning democracy,” Musk said in a statement. “I realize now that the company will not grow or serve the public empire in its current form.
Later Thursday, in an interview on the stage of the TED 2022 conference, he further said: “Having the most credible and comprehensive public platform is extremely important for the future of civilization.”
Musk has revealed in regulatory documents in recent weeks that he has bought Twitter stock almost daily since Jan. 31, resulting in a 9% stake. Only the pioneering group has more control over Twitter. A lawsuit filed in a New York federal court on Tuesday alleges Musk illegally delayed disclosing his stake in the social media company to get more shares at a lower price.
After Musk announced his participation, Twitter quickly offered him a seat on its board on the condition that he limit his purchases to more than 14.9% of the company. But the company said five days later Musk denied it.
Source: Huffpost
