Elon Musk is the ‘ultimate wild card’: Mike Gunzelman
Fox News Headlines 24/7 sports reporter Mike ‘Gunz’ Gunzelman argues that Elon Musk is ‘unpredictable’ after the Tesla CEO announced he has a backup plan to buy Twitter.
Twitter's board of directors has unanimously adopted a limited duration shareholder rights plan following Tesla CEO Elon Musk's $54.20 per share offer to take the social media giant private.
TWITTER FACES ‘FULL BLOWN ELON CIRUCS’: ANALYST
Under the plan, which is also referred to as a "poison pill", shareholders' rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter's outstanding common stock in a transaction not approved by the board. In the event that the rights become exercisable, shareholders will be entitled to purchase additional shares of common stock at a discounted rate.
The board says the plan "is intended to enable all shareholders to realize the full value of their investment in Twitter" and 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."
The plan, which will expire on April 14, 2023, does not prevent Twitter's board from engaging with parties or accepting an acquisition proposal if they believe it is in the best interest of the company and its shareholders.
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Musk's $43 billion bid comes less than two weeks after he disclosed a 9.2% stake in Twitter on April 4. Though Musk was initially invited to join Twitter's board, he later declined the offer. As part of joining the board, Musk would've been unable to own more than 14.9% of Twitter's stock while serving on the board or for 90 days after. Musk's board term would have expired at Twitter’s 2024 annual meeting.
Though Elon Musk has said that the offer is his "best and final" one, he revealed at TED2022 on Thursday that he is prepared with a plan B. When asked for specific details, he declined to elaborate.
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