Twitter Sets Up a Plan to Avoid Musk’s Acquisition Bids
Twitter Inc. adopted a measure that would shield it from hostile acquisition bids, taking steps to thwart billionaire Elon Musk’s unwelcome offer to take the company private and attempt to make it a bastion of free speech.
The board set up a shareholder rights plan, exercisable if a party acquires 15% of the stock without prior approval, lasting for one year only. The plan seeks to ensure that anyone taking control of the social media company through open market accumulation pays all shareholders an appropriate control premium, according to a statement Friday.
Twitter enacted the plan to buy time, according to a person familiar with the matter. The board, which met Thursday to review the bid, wants to be able to analyze and negotiate any deal, and may still accept it.
