A ‘poison pill' plot to thwart Elon Musk's Twitter takeover proposal | US News | NewsRme

A "poison pill" plan has been adopted by Twitter's board of directors after Tesla CEO Elon Musk bid $43.4 billion, or more than Rs 3.31 lakh crore, for the social media network. A shareholder rights plan enables current shareholders to buy more stock in a firm at a discount. Because of this, the opposing party's stake in the company is less valuable, making a buyout more expensive. In hostile takeover scenarios, the method established in the 1980s is often used. Musk's current 9 percent holding in Twitter will trigger the plan, which would take effect if Musk's share rises to 15% or higher. Twitter said, however, that the "poison pill" policy would not preclude the board of directors from talking with parties or approving an acquisition deal that it believes is in the company's and shareholders' best interests. The approach is set to expire on April 14, 2023, according to the memo. After acquiring a 9.2 percent interest in Twitter on April 4, Elon Musk became the company's largest shareholder. Tesla's CEO, on the other hand, has opted not to join the social media platform's board of directors. Since then he has been trying to acquire the firm. Stay Connected with us: ==================== Website: https://newsRme.com YouTube:    / newsrmeuk   Facebook:   / newsrme   Twitter:   / newsrme   Instagram :   / newsrme