The world’s most enormous rich and Tesla CEO Elon Musk is desperate to buy the “bluebird”, i.e. Twitter. Their desperation is so visible that they are ready to pay any amount to buy the popular microblogging site Twitter. On Friday, April 15, Twitter made a Poison pill strategy for this offer by Elon Musk. Let us know about it in detail…
Poison Pill Strategy
Elon Musk has offered to pay $ 54.20 (Rs 4137.17) for every share to buy Twitter. In such a situation, the Twitter Board of Directors has strategised differently not to make this offer to Elon. The Board of Directors has adopted the shareholder rights scheme called Poison pill for a limited period. The Twitter board said in an official press release that it had adopted the Shareholder Rights Scheme because of an unsolicited and legally non-binding offer to acquire Twitter.
What is the poison pill strategy?
In the business world, the poison pill is a term that refers to a type of strategy. The Twitter board has used this term to block Elon Musk’s attempts to buy Twitter. Even if this term is in place, it will be expensive for Elon Musk to buy Twitter, but it will not be difficult. Maybe Elon throws away the thought of buying it if it is costly.
The rights plan is applicable on 15% shares.
Let us tell you that the shareholders’ rights plan will be implemented if they try to buy 15 per cent of the shares. Currently, Elon Musk owns more than 9 per cent of Twitter’s shares. Along with this, he is the largest shareholder of this company. Elon Musk had offered to buy 100 per cent shares from Twitter in the past. Along with this, he also offered to pay $ 54.20 (Rs 4137.17) for each share.