Twitter Opts for ‘Poison Pill’ to Repel Elon Musk Takeover
Twitter's board of directors on Friday voted unanimously to use a tactic called a "poison pill" to fend off Elon Musk's attempt to take over the company. In such a defensive tactic, all Twitter shareholders except Musk could buy more shares at a discount. This would dilute the world's richest person's stake in the company and prevent him from recruiting a majority of shareholders supporting his move. If Musk's ownership in Twitter grows to 15% or more, the poison pill would go into effect. Musk, who earlier this week was revealed as the company's largest individual shareholder, with 9.2% of the shares, later offered more than $43 billion, or $54.20 a share, to purchase the entire company. Musk's offer would provide a substantial premium over Twitter's current stock price of…