AP Explains: Twitter's 'poison pill' for Elon Musk
(15 Apr 2022) FOR CLEAN VERSION SEE STORY NUMBER: 4375928 RESTRICTION SUMMARY: ++MUSIC CLEARED FOR EDITORIAL USE++ ASSOCIATED PRESS ARCHIVE: Hawthorne, California - 10 October 2019 1. Various STILLS of Elon Musk ASSOCIATED PRESS ARCHIVE: New York - 29 November 2021 ++PARTIALLY COVERED BY PREVIOUS SHOT++ 2. STILL of Twitter logo on screen inside New York Stock Exchange ASSOCIATED PRESS ARCHIVE: New York - 15 April 2022 3. SOUNDBITE (English) Paul Harloff, Associated Press: ++PARTIALLY COVERED++ "The stock market and even people who aren't even in the stock market have been captivated by the drama involving Elon Musk and Twitter. Two weeks ago, he announced he had a nine percent stake in the company. This week, he announced she wants to buy the entire company. Twitter has enacted what is called a shareholder rights plan, or a poison pill, to either prevent him from taking over the company or the very least kind of slow him down." ASSOCIATED PRESS Internet - 14 April 2022 4. Screengrab of Elon Musk Tweet 5. Various of Musks' SEC filing ASSOCIATED PRESS ARCHIVE: San Francisco - 13 May 2020 6. Exterior of Twitter headquarters ASSOCIATED PRESS ARCHIVE: Wilmington, Delaware - 13 July 2021 7. STILL of Elon Musk giving salute POOL ARCHIVE: Berlin - 1 December 2020 8. Various STILLS of Elon Musk gesturing against blue background ASSOCIATED PRESS New York - 15 April 2022 9. SOUNDBITE (English) Paul Harloff, Associated Press: ++PARTIALLY COVERED++ "What this is designed to do is to stop a hostile takeover. So say Twitter rejects the existing bid from Musk for $54.20 a share. Musk has the ability to just go to Twitter's shareholders and say, 'Forget about the board, I'm offering you 54 dollars and 20 cents a share. What do you say?' With the poison pill in place, once he gets 15 percent, you know, once, say, couple of shareholders sell him six percent worth, which would bring him... That triggers this poison pill, which allows other shareholders to buy shares at a discount. And you know, why wouldn't they? They buy shares cheaper than they are. And then Elon's going to, or Musk is going to pay them more money for those shares, so why wouldn't you do that? And shareholders keep doing that. It just makes it a lot more expensive for him to purchase the company. That doesn't mean that Twitter won't eventually negotiate a deal with him, but this gives them a little more sway and they can, you know, force him to increase his bid, even though he has said $54.20's his final offer. He's a person who's been known to change his mind, so he could come in with a higher offer." ASSOCIATED PRESS ARCHIVE: New York - 7 November 2013 10. Various STILLS of Twitter executives celebrating on floor of New York Stock Exchange ASSOCIATED PRESS ARCHIVE: Wilmington, Delaware - 13 July 2021 11. STILL of Elon Musk looking up with puzzled face ASSOCIATED PRESS ARCHIVE: New York - 7 November 2013 12. STILL exterior of New York Stock Exchange with Twitter logo on facade ASSOCIATED PRESS ARCHIVE: Cape Canaveral, Florida - 19 January 2020 13. STILL of Elon Musk smiling with phone at chest ASSOCIATED PRESS ARCHIVE: Hawthorne, California - March 14, 2019 14. Various STILLS of Elon Musk gesturing against black background STORYLINE: Twitter is trying to thwart billionaire Elon Musk's takeover attempt with a "poison pill" — a concoction that companies have been wielding against unwelcome suitors for decades. Twitter didn't disclose all about its poison pill Friday, but said more information will be laid out in a forthcoming filing with the Securities and Exchange Commission. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: / ap_archive Facebook: / aparchives Instagram: / apnews You can license this story through AP Archive: http://www.aparchive.com/metadata/you...
