The company announced the move Friday and provided more details in a regulatory filing early Monday. On Thursday,
A rights agreement enacted by the board would give shareholders as of
The preferred stock would have the same voting rights as a common share. It would give existing shareholders more votes, making it harder for an investor to take control of the company. The filing does not specifically mention Musk.
"The effect of the agreement may be to “render more difficult or discourage a merger, tender or exchange offer or other business combination involving the company,” the filing said.
Despite the poison pill defense, the board is still leaving open the possibility of negotiating with Musk or another suitor. The filing says the rights agreement should not interfere with any merger, offer or other business combination approved by the board.
Twitter's board hasn't formally rejected Musk's offer.
“Taking Twitter private at
Twitter said in a filing Thursday that Musk offered to buy the company for more than
Musk called the offer final, although he provided no details on financing. Such details could improve his chances of buying the company. Musk likely could raise some of the money by borrowing billions using his stakes in
Shares of Twitter rose nearly 3% to
Musk revealed in regulatory filings over recent weeks that he’d been buying Twitter shares in almost daily batches starting
On Twitter Monday, Musk wrote that board members would get no pay if his offer is successful. That would save Twitter about
O'Brien reported from
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