Twitter launches ‘poison pill’ tactic to unravel Elon Musk’s takeover Business

Musk’s offer is 38% higher than Twitter’s price before Musk disclosed his stake, but below where the shares were trading just six months ago.

Analysts also said Mr Musk will need to be clearer about how he plans to fund the deal if he is to win support. He was fined $20 million and resigned as Tesla chairman after tweeting in 2018 that there was ‘funding secured’ for a deal to take Tesla private and then not go from forward with an offer.

Chris Pultz, portfolio manager at Kellner Capital, said: “I don’t think Twitter’s board will really have a hard time saying no to this deal. It’s not an excessive premium and it’s not overvalued now.

Under the poison pill plan put in place on Friday, existing shareholders would be allowed to buy additional shares at a discount if Mr Musk, or others, bought more than 15% of the company without board approval. administration. The move, common in hostile takeovers, effectively dilutes the hostile side’s stake.

Twitter said the move “will reduce the likelihood that any entity, person or group will gain control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or giving the board enough time to make informed judgments and take actions that are in the best interests of shareholders.

Shares of Twitter fell 1.7% in New York on Thursday, indicating the market does not expect the deal to materialize.

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This notice was published: 2022-04-15 18:12:51

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