Twitter’s board discussed Elon Musk’s offer to buy Twitter, a plot aimed at hampering his ability to buy Twitter.
Last Friday, the companyhas announcedShareholder Rights Plan Known in the financial world as the “poison”, it is a strategy that companies use to protect themselves from hostile takeovers. The plan will remain in effect until April 14, 2023, according to the statement.
basically This approach allows shareholders to purchase additional shares of the company at a discounted price. effectively reducing the value of the stock and make the price higher for the prospective buyer. followInformation from the Cornell Law School Legal Information Institute.
Twitter’s plan could allow entities to buy 15% or more of Twitter’s stake in transactions not approved by the board. according to the company statement
Musk bought a 9.2% stake in Twitter last month. And a few days later refused to join the company’s board. and on thursday The tech billionaire also announced a $41.4 billion cash offer to buy Twitter, saying his intention is to ensure the social media platform remains a platform for free speech.
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