Twitter board approves shareholder rights plan after Musk offer

Twitter Inc. announced on Friday that the company has adopted a shareholder rights plan, or “poison pill,” that will reduce the chances that a person or group will take control of the company. The announcement comes after Elon Musk’s offer of $54.20 per share was made public on Thursday. There were reports that Twitter was considering a rights plan before it was announced. “Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board,” the announcement said. The rights plan doesn’t preclude Twitter from considering offers or accepting them if they are in the best interest of shareholders. The rights plan expires on April 14, 2023. Twitter stock closed Thursday down 1.7%, but is up 4.3% for the year to date. See Also: Twitter loses another bullish analyst, as KeyBanc’s Patterson says Musk’s bid could ‘go up in smoke’

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