Twitter Adopts 'Poison Pill' To Block Elon Musk Takeover Bid

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Twitter Adopts 'Poison Pill' To Block Elon Musk Takeover Bid
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Twitter unrolled a defense against Elon Musk's unwelcome takeover bid, introducing what is known as a poison pill to fend off Musk's $43 billion acquisition attempt.

Musk holds about 9% of Twitter stock, but he has made an offer to buy the company outright.

"The poison pill puts a temporary roadblock in front of Musk going forward," said corporate governance expert Edward Rock, who teaches at NYU Law School."It Twitter said the plan is aimed at enabling investors to"realize the full value of their investment" by making it less likely that Musk would still be interested in a hostile takeover.Under the terms of the plan, Twitter can still engage with parties interested in buying the company, or even accepting an acquisition proposal, if a bid is in the"best interests" of the company and its shareholders.

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