Twitter’s board of directors hastily approved the toxic pill agreement in the wake of Elon Musk’s $43 billion takeover bid that surfaced Thursday.
The “limited-term shareholder equity plan” unanimously approved by Twitter’s board of directors late Thursday is designed to prevent any individual or entity from raising more than 15% of a company’s stock by buying shares on the open market.
The Rights Plan aims to enable all contributors to realize the full value of their investment in Twitter. A rights plan will reduce the likelihood of any entity, person or group taking control of Twitter through the accumulation of the open market without paying an appropriate control premium to all shareholders or without providing sufficient time for the Board of Directors to make informed judgments and take actions in the best interests of shareholders.”
The plan will be in effect until April 14, 2023.
More is coming
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