Elon Musk took a swipe at the board of Twitter on Monday after the firm adopted a poison pill, a limited duration shareholder rights plan. The move aims to prevent the billionaire from buying the social network.
Under the new structure, the online platform opted to sell shares at a discount. This would stop any attempt by shareholders to amass a stake of more than 15.00%.
Subsequently, Musk owns 9.10%, as revealed in a Securities and Exchange Commission filing last week. He offered to buy Twitter for $54.20 a share, holding a value of $43.00 billion.
It is a way to halt a potential hostile takeover by diluting the entity’s stake eying the takeover. The board voted unanimously to adopt the plan, which will expire on April 14, 2023.
In a tweet, the Tesla CEO stated that the board salary would be $0 if his bid succeeds. He noted that the company would save almost $3.00 million a year.
Then, he did not further elaborate on the post. Meanwhile, the social media giant did not respond to a request for comment.
Musk also created a poll last week, continuing his tirade against the company. He asked his 80.00 million followers if taking Twitter private should be up to shareholders, not the board. Eventually, a large majority of users responded yes.
On Saturday, the billionaire shared a cryptic tweet that said Love Me Tender, an Elvis Presley song.
Several investors suggested that the post hints at a potential tender offer to Twitter. The proposal would be the latest in the saga over Musk’s dramatic bid.
Then, former CEO Jack Dorsey called out the company’s board on Saturday. He said the executives have consistently been the dysfunction of the business.
Private equity firms consider Twitter bid
Meanwhile, private equity firms have conveyed interest in joining in a bid for Twitter.
Last week, Thoma Bravo informed the platform that it intends to explore a buyout that would challenge Elon Musk’s offer. The technology-focused private equity firm had more than $103.00 billion in assets under management as of December.
Moreover, Apollo Global Management also said that it could provide financing for any deal. It also cited that it is open to working with Musk or any other bidder.
Correspondingly, Apollo’s participation would be through its credit investment platform.
Shares of Twitter closed 7.48% or 3.37 points higher to $48.45 per share on Monday. In extended trading, it added 0.72% or 0.35 points to $48.80 per share.
