Elon Musk considers bringing in partners on his Twitter bid as the tech giant announced it adopted a ‘poison pill’ measure to prevent the billionaire CEO from taking over the company.
Elon Musk offered to acquire the remaining Twitter shares he doesn’t own for $54.20 per share – and the board refused to hold a vote.
The ‘poison pill’ “preserves the right for Twitter shareholders other than Musk to acquire more shares of the company at a relatively inexpensive price, effectively diluting Musk’s stake.” – CNN reported.
“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 or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders,” Twitter said in a statement.
How is that is even legal?
Elon Musk appears to be upping the ante by bringing in partners on his Twitter bid.
The New York Post reported:
Elon Musk is speaking to investors who could partner with him on a bid for Twitter, sources close to the matter told The Post.
A new plan that includes partners could be announced within days, those sources said.
One possibility, the sources said: teaming with private-equity firm Silver Lake Partners, which was planning to co-invest with him in 2018 when he was considering taking Tesla private.
Silver Lake’s Co-CEO Egon Durban is a Twitter board member and led Musk’s deal team during the 2018 failed effort to take Tesla private, sources said. Silver Lake declined to comment.
Whether Musk would present Twitter with an entirely new offer — perhaps raising his current bid — or whether new partners would simply go in on a purchase with him isn’t clear. A Musk spokesperson declined to comment.