The Board of Directors of Twitter has announced the unanimous adoption of a plan to protect the rights of the company shareholders after the proposal of Elon Musk 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 last until April 14, next year.
The defensive tactic, called the “poison pill,” involves protecting a company from unwanted takeovers.
The plan allows shareholders to purchase additional corporate shares at a discount if any entity or individual acquires 15% or more of Twitter’s shares without board approval.
The decision is aimed at “blurring” the potential buyer’s share in order to make the takeover less attractive.
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