Musk
Twitter adopts 'poison pill' plan to prevent hostile takeover by Musk
Washington: Twitter announced that its board of directors adopted a shareholder rights plan that would reduce the likelihood that any person, entity or group would be able to gain full control over the company without paying a premium.
On Thursday, Musk filed an offer with the US Securities and Exchange Commission (SEC) to purchase 100% of Twitter for $54.20 per share, valuing the company at $43 billion.
Musk is currently Twitter's second largest shareholder, having purchased 9.2% of the company earlier in April.
Only Vanguard owns a larger percentage at 10.29%, according to an April 8 SEC filing.
"The Board adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter," the company said in a press release.
"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."
Musk said during a TED Talk forum that there was an alternative plan to take over the company if his offer was rejected.
However, he also expressed doubts about whether he would be able to complete the acquisition.
As one of Twitter's most-prolific users, Musk said his main concern is with the platform's overreach in moderating content and censorship.
In March, he tweeted out a poll that asked Twitter users whether the site adhered to the principle of free speech.
"Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy," he said.
"What should be done?" He subsequently declared himself a "free speech absolutist." Twitter said its rights plan will expire on April 14, 2023. It also said more details would be provided in an 8K to be filed with the SEC.
(With UNI/Sputnik inputs)
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