Twitter considered using the "poison pill plan" to limit Musk's shareholding.
On April 14, local time, the Wall Street Journal reported that the Special Push was considering a "poison pill plan", which is a legal mechanism to prevent Musk from significantly increasing the company's shares.
The "Poison Pill Plan", also known as the "Equity Dilution Anti-Takeover Measure" or the "Shareholders' Equity Plan", is a defensive measure against hostile takeovers by the acquired company.
On April 14, Tesla CEO Elon Musk, Twitter's largest shareholder, offered to buy Twitter's issued common stock for a total of about $43 billion at a cash price of $54.20 per share, and Twitter confirmed that it had received the offer and said its board would review the offer.
According to the Bloomberg Billionaire List, The World's Richest Musk currently has a net worth of $259 billion.
According to the Wall Street Journal, on April 14, local time, Musk said in an interview at a TED conference in Vancouver that he did not care about making money from Twitter and admitted that his proposal to buy the company and take it private may not succeed.
Musk also said he would have a Plan B if Twitter's board didn't accept his offer, but declined to elaborate on what that meant. Musk stressed that he wants to retain as many shareholders as the law allows in private companies.
According to Musk, he has enough assets to complete the deal.
The Wall Street Journal quoted people familiar with the matter as saying that Musk had heard that outside investors might be interested in working with him to acquire Twitter. Morgan Stanley, Musk's financial adviser, will also provide some debt financing, the person said.
According to the Wall Street Journal, Musk admitted in an interview on the 14th that the proposal to acquire Twitter and privatize it may not succeed. But he also said he would have a Plan B if Twitter's board didn't accept his offer. However, Musk did not reveal any details.
Previously, on April 4, according to documents disclosed by the U.S. Securities and Exchange Commission (SEC), Musk held 73.49 million ordinary shares of Twitter, accounting for 9.1% of Twitter's common stock, making him Twitter's largest shareholder. Subsequently, Twitter invited Musk to join the board. As a board member, Musk will be limited to holding no more than 14.9 percent of Twitter.
Musk said at one point that he planned to accept the appointment, but a few days later he unexpectedly refused to join. Speculation has been made that he may be seeking greater control.
As of the U.S. stock close on April 14, Twitter was up 1.18% at $46.34 a share.
Original title: Foreign media said that Twitter is considering the "poison pill plan" to resist the acquisition, and Musk said there is also Plan B
Article source: The Paper