Twitter‘s board of directors has announced it has unanimously adopted a plan to protect the rights of shareholders after Elon Musk’s offer to acquire the social network.
According to the company, the initiative aims to realize the full value of investors’ investment in Twitter. The plan will run until April 14, 2023.
A defensive tactic called the “poison pill” is supposed to protect the company from unwanted takeovers.
The plan allows shareholders to buy additional corporate shares at a discount in the event that any organization or individual acquires at least 15% of Twitter’s securities without the approval of the transaction by the board of directors.
This decision is aimed at “blurring” the potential buyer’s share in order to make the takeover less attractive.
This move comes after Musk became last month the company’s largest shareholder after paying $2.89 billion for a 9.2% stake in Twitter.