Twitter Plans a Poison Pill Defense to Thwart Elon Musk’s Takeover Bid
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Twitter working on a poison pill defense to thwart Elon Musk’s takeover bid. The company will be adopting a measure to protect it from such hostile acquisition bids.

The company is considering the option to adopt a poison pill, it’s a shareholder rights plan, according to some people who chose to remain unidentified. 

Twitter may implement this tactic as soon as tomorrow, while in yet another scenario the company may just say the offer is too low.

Earlier on Thursday, Elon Musk, CEO of Tesla Inc offered $54.20 a share in cash for Twitter, valuing the social media company at $43 billion. According to Musk, his best and final offer is 9% more than the already acquired stake in Twitter earlier this year. 

Implementing the poison pill will enable existing shareholders to purchase additional shares at a discount. This will effectively dilute the ownership interest of the hostile party. This strategy is commonly used by companies under fire from activist investors or in hostile takeover situations. 

The board members of Twitter on Thursday reviewed Musk’s proposal to determine if it was in the best interest of the company and its shareholders. 

One of the prominent investors, Saudi Arabia’s Prince Alwaleed bin Talal said, the deal was not close to the intrinsic value of the popular social media platform.

Musk later speaking at a TED conference said he was not sure if he “will actually be able to acquire it.” 

He further said, his intent was to also retain “as many shareholders as is allowed by the law,” rather than having sole ownership of the company himself.

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