Twitter is expected to counter Elon Musk’s takeover attempt with a “poison pill,” The New York Times reports.
Musk, who earlier this month became Twitter’s largest shareholder, dropped plans to join the social network’s board of directors last week.
He submitted a filing to the Securities and Exchange Commission on Thursday offering to buy the entire company for $54.20 a share, or about $43 billion.
Musk said this was his “best and final offer” and represented a substantial premium from the company’s share price the day before he bought his stake.
“I don’t have confidence in management,” Musk, who has repeatedly criticized the company, said in the filing.
Twitter is expected to respond with a corporate maneuver known as a poison pill, which was devised by law firms in the 1980s to protect companies from corporate raiders.
The maneuver allows companies to flood the market with new shares or allow existing shareholders to buy them at a discount, forcing the person trying to take over a company to buy even more shares to gain control.
The company’s board met Thursday and discussed ways to block Musk’s acquisition attempt, including the poison pill proposal or even courting another buyer.
Musk teases plan B:
Musk admitted during an appearance at the TED2022 conference in Vancouver that he is “not sure” he will actually be able to buy Twitter.
Asked whether there was a “plan B,” Musk said “there is” but declined to elaborate.
Though Musk is one of the richest people in the world, most of his assets are tied up in Tesla and SpaceX.
“I have sufficient assets,” Musk said when asked if he could secure the funding. “I can do it if possible.”