After Elon Musk's acquisition bid, Twitter adopts a one-year dose of poison

After Elon Musk's acquisition bid, Twitter adopts a one-year dose of poison ...

Friday, the Board of Directors approved unanimously a limited-duration shareholder rights strategy, also called a, following's to acquire the social media company.

The objective is a defensive strategy that reduces hostile takeovers as much as possible, reducing "the likelihood" that any entity, person, or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium, or without giving the Board enough time to make informed judgments and take actions appropriate for them.

The Tesla CEO and founder submitted a final offer to buy Twitter for $54.20 per share, valuing it at $43 billion. The board said it is looking at the proposal.

The new rights plan expires for a year, but it does not prevent the Board from engaging with parties or accepting a purchase proposal if the Board believes it is in the best interests of Twitter and its shareholders, according to the company.

Plans to maintain rights consistent in reducing holdings of a potential adversary, allowing existing stockholders to acquire additional shares of a company, Twitter, in this case, if any "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."

Musk has described his bid as "important to the function of the United States as a free country and to freedom in the world more broadly." He is an advocate for open-sourcing Twitter's algorithms, while eliminating intervention and the enforcement of information.

The stock market in the United States is closed today for Good Friday. Twitter shares ended Thursday's session down (during 1.68% to $45.08) but increased in after-hours trading, up 3.5 percent.

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