If you haven’t spent the last two weeks in a cave, you haven’t missed Elon Musk’s surprise entry into the Twitter capital. On April 4, 2022, Tesla’s CEO announced that he will become one of the main shareholders of the social network, up to 9.2%, with an investment of $ 2.7 billion.
Following this announcement, Twitter executives confirmed that Elon Musk has come to the board of directors. But this happened without taking into account the strategy of beloved Elon Musk. Finally, SpaceX’s CEO will not be joining the bluebird’s board of directors. Better still, Tesla’s boss decides to put $43 billion on the table to buy Twitter through a hostile takeover.
“Having a public platform that is trustworthy and generally inclusive is essential for the future of civilization. I don’t care about the economy” reassured Elon Musk during a TED conference shortly after the takeover bid was published.
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Twitter has several legal weapons to repel Elon Musk
Not surprisingly, the position of the Twitter Board is changing radically. The billionaire does not take this takeover offer very positively. And for now, if the Twitter board gets Elon Musk to scrutinize the takeover bid, tools have already been implemented to reject the billionaire’s offer. According to our colleagues at The Verge, Twitter’s board would consider using a legal mechanism developed in the ’80s, called a “Poison Pill” or poison pill in Molière.
Simply put, this technique consists of making a company’s stock and capital less attractive and, above all, much more expensive for those who want to buy them. With the “Poison Pill”, a company’s board of directors can decide. flood the stock market (as soon as an investor buys them in bulk) to make it easier for other investors to buy. According to several experts quoted by the media, Twitter has specifically made certain provisions regarding the “Poison Pill” in its statutes. the possibility of issuing “empty” preference shares without prior approval of the board.
Time will tell if this tactic will be enough to deter Elon Musk from taking over Twitter. He recently explained why he’s so eager to buy Twitter. According to him, its main purpose is to make it a platform entirely dedicated to freedom of expression.
Source : Anger
