Twitter board announces poison pill measure to block Musk buyout
Twitter’s board of directors has issued a new “shareholder rights plan” to block Elon Musk’s proposed buyout offer, a major setback to the billionaire’s efforts to take full financial control of the company.
The plan was adopted “following an unsolicited, non-binding proposal to acquire Twitter,” the company’s board of directors noted in a press release announcing the change.
This maneuver, known in the finance world as a poison pill, blocks hostile takeovers by giving certain shareholders the right to purchase more stock if an outsider attempts to seize control.
The plan strongly suggests that Twitter’s board intends to fight Musk’s bid to take…