Twitter considers ‘poison pill’ strategy to block Musk from takeover; Musk hits back at shareholder on Twitter…

by The Right Scoop

I don’t think Elon Musk feels as welcome as he did when he was invited to join Twitter’s board of directors. But I guess that’s to be expected considering he wants to buy the company despite Twitter not wanting to sell.

It was reported in the WSJ today, upon news of Musk’s bid to buy the company, that Twitter is freaking out and calling meetings with their shareholders and board of directors in order to block Musk from taking over the company.

Via Newsmax:

Twitter is considering a poison pill to block Elon Musk, a 9.2% shareholder, from significantly increasing his stake to purchase the social media platform, a source tells The Wall Street Journal.

A poison pill is a defense tactic used by companies that are targets of hostile takeovers that gives existing shareholders the right to buy additional stock at a discount, thereby diluting outstanding stock.

Following the blockbuster news Tuesday, April 14 that Musk has offered to acquire Twitter for a premium of $54.20 a share in cash, Twitter called an emergency meeting of the board of directors for 10 a.m. Pacfic (2 p.m. EST) and an all-hands meeting for 2 p.m. Pacific (5 p.m. EST).

If this is true it would mean they aren’t even considering Musk’s bid to buy the company. Which is not surprising in the least.

Musk responded to the news that Twitter’s board is considering this, saying it would be contrary to the interest of their shareholders and they’d be breaching their fiduciary duty:

Musk has been quite chatty today on Twitter.

Musk posted a poll today suggesting that the purchase of the company should be up to the shareholders, not the board of directors. Most people agree by a margin of 85% to 15%.

Musk has also challenged a reportedly small Saudi shareholder today on Twitter, after said shareholder rejected Musk’s bid to buy the company:

– AND –

Musk is clearly very serious about acquiring Twitter and, as he said in today’s Ted Talk, he doesn’t like to lose.

Now take this with a grain of salt because it’s Charlie Gasparino and he’s been wrong in the past. But he claims that the federal government has suddenly launched a joint investigation into Tesla:

If this is true it’s outrageous. But certainly not beyond what the Biden admin would do.


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