PROVIDENCE, R.I. (AP) — Twitter said in a statement Friday that its board of directors has unanimously adopted a "poison pill" defense in response to Tesla CEO Elon Musk's proposal to buy the company and take it private.
Twitter said the move, formally called a "limited duration shareholder rights plan," aims to enable all its shareholders to "realize the full value of their investment" in the company by reducing the likelihood that any one person can gain control without paying shareholders a premium or giving the board more time. It could block Musk from acquiring more than 15% of Twitter.
The counter-measure comes a day after the billionaire Musk unveiled a $43 billion hostile offer for all of Twitter.
Poison pills are often used to defend against hostile takeovers. Twitter was founded by St. Louis native Jack Dorsey, who recently departed as CEO.
Jack Dorsey creator, co-founder, and Chairman of Twitter and co-founder & CEO of Square arrives on stage at the Bitcoin 2021 Convention on June 04, 2021 in Miami, Florida.Joe Raedle/Getty Image
