After Elon Musk made an offer to buy Twitter at $54.2 per share, Twitter took a so-called “poison pill” measure.
In a statement made on Twitter, it was reported that the company’s board of directors unanimously approved the limited-term shareholder rights plan. In the statement, it was reported that the board approved the plan after an unsolicited, non-binding offer to buy Twitter.
It is stated that this measure protects the right of existing shareholders other than potential buyers to purchase more shares in the company at a lower price.
It is noted that the plan will come into play if Musk or another investor buys more than 15 percent of the company’s shares. It is stated that this measure taken by the Twitter Board of Directors
cannot stop Musk’s purchase attempt, but may make the purchase more expensive or force Musk to sit at the negotiation table.
Musk, who previously bought a 9.2 percent stake in Twitter, made an offer of $54.2 per share for the entire Twitter, in a statement he made to the US Securities and Exchange Commission (SEC).
Musk, in the letter he wrote to Twitter Chairman Bret Taylor, stated that since he bought shares from Twitter, he understood that the company would not develop in its current form, and that Twitter should be transformed as a private company.
Musk, who actively uses Twitter, has more than 80 million followers on the platform. It is stated that Musk’s current assets are over $ 260 billion.
On the other hand, on April 11, Twitter CEO Parag Agrawal announced that Elon Musk, who bought shares from the company, would not be in the Twitter Board of Directors, which he had previously announced.
Meanwhile, former shareholders of Twitter filed a complaint against Musk in New York state court for violating the law in purchasing company stock. Shareholders claimed that by announcing the purchase of Twitter shares late, Musk prevented the shares of the social media company from rising, thereby harming some former shareholders.