Showing posts with label Elon Musk. SEC. Show all posts
Showing posts with label Elon Musk. SEC. Show all posts

Sunday, April 24

Twitter Fights Musk


Twitter's board has armed itself against a possible hostile takeover - a day after billionaire Elon Musk made a $43bn (£33bn) offer to buy the platform.


It has adopted what is known as a "limited-duration shareholder rights plan", also known as a "poison pill".


The move will prevent anyone from having more than a 15% stake in the company.


It does this by allowing others to buy additional shares at a discount.


The Twitter board detailed its defence plan to the US Securities and Exchange Commission and put out a statement saying it was needed because of Mr Musk's "unsolicited, non-binding proposal to acquire Twitter".


A takeover bid is considered hostile when one company tries to acquire another against the wishes of that company's management - in Twitter's case, its executive board.


Josh White, former financial economist for the Securities and Exchange Commission, told the BBC that a poison pill is "one of those last lines of defence against a hostile bid takeover".


"We call it the nuclear option," he said.


Mr White says the board has made it clear "that they don't feel like it's a high enough value for the company".  READ MORE...