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Following Elon Musk’s $43 billion takeover bid issued on Thursday morning, the board of directors at Twitter unanimously voted to approve a plan that could potentially limit how many shares the Tesla and SpaceX CEO could buy.
According to The Wall Street Journal, the company has adopted a “poison pill,” which makes it difficult for Musk to increase his stake in the company past 15 percent. Currently, Musk owns just over 9 percent.
“Poison pills, also called shareholder-rights plans, are legal maneuvers that make it hard for shareholders to build their stakes beyond a set point by triggering an option for others to buy more shares at a discount. They are often used by companies that receive hostile takeover bids to buy themselves time to consider their options,” The Wall Street Journal explained.
According to CNBC, this plan is set to expire on April 14, 2023.
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