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Twitter adopts ‘poison pill’ defense in Elon Musk’s takeover bid

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PROVIDENCE, R.I. — Twitter stated Friday that its board of administrators has unanimously adopted a “poison capsule” protection in response to Tesla CEO Elon Musk’s proposal to purchase the corporate and take it personal.

Twitter stated the transfer, formally referred to as a “restricted period shareholder rights plan,” goals to allow its traders to “notice the total worth of their funding” by decreasing the probability that anyone particular person can acquire management of the corporate with out both paying shareholders a premium or giving the board extra time. Poison tablets are sometimes used to defend in opposition to hostile takeovers.

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Twitter’s plan would take impact if Musk’s roughly 9% stake grows to fifteen% or extra. Even then, Musk might nonetheless take over the corporate with a proxy battle by voting out the present administrators. Twitter stated the plan does not stop the board from participating with events or accepting an acquisition proposal if it is within the firm’s “finest pursuits.”

The video within the media participant above is from a earlier report.

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