Twitter Mulls “Poison Pill” To Block Takeover by Musk

Deadline reports:

Twitter is said to be weighing a poison pill to prevent Elon Musk from increasing his stake in the company significantly, the Wall Street Journal reported, citing a person familiar with the situation.

The defensive strategy, also called a shareholders rights plan, make hostile takeovers more expensive and complicated for a buyer. They allow existing shareholders the right to purchase additional shares of the company at a discount, effectively diluting the ownership interest of a new, hostile party.

Musk is being sued by Twitter shareholders in Manhattan federal court for not disclosing the extent of his investment earlier.

Read the full article. The WSJ report is behind a paywall.

The Wall Street Journal reports that Twit­ter is consider­ing a poi­son pill that would pre­vent Elon Musk from significantly in­creas­ing his stake in the com­pany. https://t.co/dteeed3t2y

— Keith Boykin (@keithboykin) April 14, 2022