Tue 19 April 2022:
Twitter co-founder Jack Dorsey has lambasted the micro-blogging giant’s board after the company adopted a “poison pill” to stop a bid by Elon Musk to takeover the firm.
In response to a user, Dorsey stated, it (the board) is consistently been the dysfunction of the company.
If look into the history of Twitter board, it’s intriguing as I was a witness on its early beginnings, mired in plots and coups, and particularly amongst Twitter’s founding members. I wish if it could be made into a Hollywood thriller one day.
— Χαλιδ Σωέϊδ (@iHadrami_) April 17, 2022
Last November, Jack Dorsey passed the mantle to Indian-origin Parag Agrawal, but he is still a board member with a 2.2 percent stake till next month.
Elon Musk has stated that the economic interests of the board of directors of Twitter Inc. are not aligned with those of shareholders after the social media company took steps to thwart his takeover attempt.
The billionaire was responding to a tweet about boardmembers’ stock holdings, saying that with the departure of Jack Dorsey, the board “collectively owns almost no shares.”
The Tesla Inc. chief executive officer on Thursday offered $54.20 a share in cash for Twitter, valuing the company at $43 billion. Musk, who said it was his “best and final” offer, had already accrued a stake of more than 9% in Twitter since earlier this year.
In addition to Musk’s offer, Twitter has been fielding takeover interest from other parties, including technology-focused private equity firm Thoma Bravo. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are advising Twitter.
Twitter on Friday set up a shareholder rights plan that could thwart Musk’s hostile acquisition bid. The plan is exercisable if a party acquires 15% of the stock without prior approval and seeks to ensure that anyone taking control of Twitter through open market accumulation pays all shareholders an appropriate control premium.
In response to a user’s question about whether the “poison pill” strategy amounted to “criminal negligence,” Musk said the plan could be “more of a concern about other potential bidders” instead of “just” him.
A poison pill defensive tactic allows current shareholders to buy additional shares at a reduced price, effectively diminishing the hostile party’s ownership stake. Poison pills are frequently used by corporations facing activist investors or hostile takeover situations.
Musk has been active on Twitter since announcing the offer, in what looks to be a social media campaign to sway public opinion in favor of his proposal.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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