The board of directors of Twitter issued a new one “shareholder rights plan” to block the purchase offer proposed by Elon Muskthus posing a major obstacle to the billionaire originally from Pretoria.
The plan was adopted “following an unsolicited and non-binding proposal to acquire Twitter”, as the company’s board of directors wrote in a press release announcing the change. An “emergency” maneuver that blocks external acquisitions by giving some shareholders the right to buy more shares if someone from outside attempts to acquire the entirety of a company, and will remain in effect for one year.
On April 4, Elon Musk had already obtained the 9% of the shares of Twitter becoming ipso facto the largest individual shareholder in the company, first accepting and then abruptly refusing a seat on the board of directors, as in that capacity he could not have obtained more than 15% of the shares.
Musk criticized the possibility of council action against the deal, saying that “It would be absolutely indefensible not to put this offer to the vote of the shareholders”. The main intention behind the acquisition would be to preserve Twitter’s position as freedom of expression platform: “Twitter has become a de facto town square. My strong intuitive sense is that having a public platform that is maximally reliable and widely inclusive is extremely important.”.
Source: The Verge
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