Twitter Gains as Board Plots Defense Strategy Against Musk
- Poison pill imposes ‘significant penalty’ on unwanted buyer
- Market speculates Twitter will come up with a better plan
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Twitter Inc. shares posted their biggest gain in two weeks on Monday after the social media company launched a poison pill defense to thwart an unsolicited bid by Elon Musk to take the company private at $54.20 a share.
A securities filing on Monday confirmed the defense strategy Twitter outlined last week, which would allow the company to issue new stock that all shareholders except Musk could buy at a discounted price. It imposes a “significant penalty” on any person or entity that would acquire more than 15% of the company without board approval, according to the filing. Musk currently owns just over 9% of Twitter shares.