The board of directors of Twitter wants to protect itself against any trickery on the part of Elon Musk.
He unanimously adopted a plan to prevent the billionaire from accumulating the shares and thus significantly increase his stake in the company.
This "
poison pill
", a strategy used by companies that want to prevent an external takeover or a hostile takeover, must ""
reduce the possibility that an entity, person or group will take control of Twitter by accumulating securities on the market without paying all shareholders an appropriate premium or without giving the board sufficient time to make informed decisions
,” the board wrote in a press release.
According to this text, if an entity exceeds the threshold of 15% of participation without the agreement of the board, then the other shareholders will have the possibility of buying new shares at a reduced price.
The objective is to dilute the part of the undesirable activist.
Musk evokes a “plan B”
This plan should allow the board of directors to save time and thus be able to study more calmly the takeover offer filed Thursday by Elon Musk.
The boss of Tesla and SpaceX has proposed to acquire Twitter for the equivalent of 43 billion dollars and thus take the company out of the stock market.
Read alsoElon Musk takes on Twitter and offers to buy the social network for $43 billion
On the same day, Elon Musk told the Ted2022 conference that he had "
a plan B
" if his takeover offer was rejected by Twitter.
Then he tweeted that it would be “
absolutely indefensible if [his] offer were not put to a shareholder vote.
They are the ones who own the company, not the board of directors.
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