Tuesday, June 6, 2023
The Optic News
Advertisement
  • Home
  • Local
  • World
  • National
  • Politics
  • Finance
  • Sports
  • Science
  • Classifieds
  • Social
No Result
View All Result
  • Home
  • Local
  • World
  • National
  • Politics
  • Finance
  • Sports
  • Science
  • Classifieds
  • Social
No Result
View All Result
The Optic News
No Result
View All Result
Home Social

Twitter Board Adopts Poison Pill To Fend Off Elon Musk’s Takeover Bid

April 15, 2022
in Social
Reading Time: 2 mins read
A A
0
Share on FacebookShare on Twitter


Topline

Twitter announced Friday that it has decided to adopt a limited duration shareholder rights plan, known as a “poison pill,” in response to Tesla CEO Elon Musk’s $43 billion acquisition offer a day earlier—as the social media company prepares to resist a potential hostile takeover.

The move comes a day after Musk’s unsolicited $43 billion offer to buy the company.


Photo by Martin Schoeller, Illustration by Forbes

Key Facts

Twitter’s board of directors voted unanimously to adopt the shareholder rights plan, often called a “poison pill,” which is commonly used to fend off hostile takeovers by diluting shares.

Under the new plan, if any shareholder acquires more than a 15% stake in Twitter without the board’s approval, other shareholders will be allowed to add to their stakes at a discounted price.

The plan, which is “similar to other plans adopted by publicly held companies in comparable circumstances,” expires on April 14, 2023.

Twitter is clearly gearing up to resist any unwarranted takeover, with the decision coming a day after Tesla billionaire Elon Musk made an unsolicited $43 billion offer to buy the social media company and take it private.

The board did note that the poison pill would not prevent it from accepting a future acquisition offer, however, as long as it is deemed to be “in the best interests of Twitter and its shareholders.”

Crucial Quote:

“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.

What To Watch For:

Several Wall Street analysts recently downgraded Twitter stock, warning that Musk’s takeover bid puts the company in a difficult position. Stifel became one of the first to issue a sell rating on Twitter shares amid a “full blown Elon circus,” while KeyBanc analysts warn the bid could “go up in smoke” and a potential sell-off could ensue if Musk decides to cash out.

Further Reading:

Some Analysts Downgrade Twitter Stock Amid ‘Full Blown Elon Circus’ (Forbes)

Musk Says He Has ‘Sufficient Funding’ To Buy Twitter, Claims He Has ‘Plan B’ If Offer Is Rejected (Forbes)

Distraction Or Hostile Takeover? Here’s What Analysts Say About Elon Musk’s Offer To Buy Twitter (Forbes)

Did Elon Musk Trigger New Legal Headache With SEC ‘Bastards’ Comment? (Forbes)



Source link

Tags: adoptsBidboardElonFendMuskspillpoisonTakeoverTwitter
Share30Tweet19
Previous Post

A New Horror Movie Finds Solace, and Identification, in Terror

Next Post

Lay’s Film Advert By OMD: Grab the Moments

Recommended For You

Foo Fighters Are Shaken Yet Still Standing on ‘But Here We Are’

by The Optic News
June 2, 2023
0

For all Dave Grohl’s grinning joviality, it’s easy to forget that his long-running rock group Foo Fighters was, initially, a solo project born of grief. The former Nirvana...

Read more

LinkedIn Launches New ‘Find Your In’ Ad Campaign

by The Optic News
May 29, 2023
0

LinkedIn’s launching a new promotional campaign, created by ad agency Droga5, which aims to highlight how you can use the platform to find your ideal career pathway. https://www.youtube.com/watch?v=3CkCNoCrZG8...

Read more

Want to Be an Artist? You’re in Luck. This One Is Selling His Practice.

by The Optic News
May 26, 2023
0

The phenomenon of the artist who drops out, whether only leaving the scene socially or actually ceasing to make work, may be as old as the scene itself,...

Read more

TikTok Challenges Montana’s Decision to Ban the App

by The Optic News
May 22, 2023
0

As expected, TikTok has launched a legal challenge against Montana’s decision to ban the app in the state. Last Wednesday, Montana Governor Greg Gianforte signed legislation to ban...

Read more

‘The Offbeat Sari’ Exhibit Opens at London’s Design Museum

by The Optic News
May 19, 2023
0

The sari, in essence, is a six- to nine-yard cloth draped freely around the body.But the garment, which is often worn with a blouse and a petticoat, comes...

Read more
Next Post

Lay's Film Advert By OMD: Grab the Moments

Twitter adopts ‘poison tablet’ to thwart Elon Musk takeover bid | Know-how Information

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hydrate

The Optic News

Copyright © 2022 - The Optic News.
The Optic News is not responsible for the content of external sites.

Navigate Site

  • Home
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us
  • Client Portal
  • Client Portal
  • Client Portal
  • Client Portal

Follow Us

No Result
View All Result
  • Home
  • Local
  • World
  • National
  • Politics
  • Finance
  • Sports
  • Science
  • Classifieds
  • Social

Copyright © 2022 - The Optic News.
The Optic News is not responsible for the content of external sites.