Twitter board adopts ‘poison pill’ to fight Elon Musk buyout bid

Twitter has officially responded to billionaire Elon Musk’s offer to buy 100 per cent stake in the company. In the latest update, Twitter’s board of directors has issued a new “shareholder rights plan” to block Musk’s offer. This comes as a major setback to the billionaire’s efforts to take full control of Twitter.The board of directors noted in an official press release that they have "adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter". 

Twitter's  board has unanimously adopted a so-called shareholder rights plan, also known as a "poison pill," as the struggle for control of the social media platform intensified. "The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium," Twitter said in a statement. The world's richest person offered $54.20 a share, which values the social media firm at some $43 billion, in a filing with the Securities and Exchange Commission made public on Thursday. Musk told a conference in Canada that he was "not sure" he would succeed and acknowledged a "plan B" but refused to elaborate, though in the filing he noted a rejection would make him consider selling his shares.