Twitter, which is the subject of a hostile takeover bid by Elon Musk, does not intend to let it go: the network took measures on Friday supposed to prevent the boss of Tesla, and the richest man of the world, to easily redeem its shares. This is the so-called “poison pill” clause in financial jargon: the Californian group plans to sell off its shares for all other shareholders. It will be triggered if Elon Musk exceeds 15% of Twitter shares without the agreement of the board of directors (CA). Elon Musk already owns just over 9% of the company’s capital.
The total buyout price could increase significantly
If he buys back enough shares to reach the 15%, all the other holders of shares on the platform will be able to buy them back at a reduced price, which would greatly increase the price that the entrepreneur would have to pay to get his hands on the social network. The plan must “reduce the possibility that any entity, person or group will take control of Twitter by accumulating stock in the market without paying all shareholders an appropriate premium or giving the board sufficient time to make informed decisions,” the San Francisco-based company said in a statement.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.