Social media giant Twitter has decided to introduce a defense called "poison pill" to counter the takeover offer of American electric car maker Elon Musk.
Mr. Musk says that if the takeover offer is rejected, there are alternatives, and the focus will be on what to do.
Twitter unanimously introduced takeover defense measures to reduce the percentage of voting rights of hostile takeovers after discussing the takeover proposal received from the world's richest man Elon Musk on the 15th. Announced that it was decided in.
For the next year, if you try to acquire more than 15% of the shares without the approval of the board of directors, it will allow other shareholders to buy more shares at a cheaper price. This method is called "poison pill" which means poisonous drug because of the high cost of.
The proposal is to invest 5 trillion yen in Japanese yen to acquire Twitter shares, and Mr. Musk, who is eager to reform Twitter, will accept the acquisition proposal with his own account on the 14th at the board of directors I posted the content asking the user if the shareholder should decide without it.
Mr. Musk said that if the takeover offer is rejected, there are alternatives, and the focus will be on what to do in the future.
What is the "poison pill" that Twitter has decided to introduce?
The "poison pill" is one of the defenses that a hostile takeover company takes to counter this.
The right to acquire new shares, "stock acquisition rights," is assigned to existing shareholders in advance, and if a hostile acquirer tries to acquire a certain percentage of shares, the existing shareholders will have favorable conditions. You will be able to acquire shares.
As the number of issued shares increases, the side that launched the acquisition will not be able to realize the acquisition unless it spends more than originally planned, and it can be expected to have an effect that discourages the acquisition. = It is called "poison pill".
Although it is a typical takeover defense measure in the United States, it has been pointed out that in general, the number of shares will increase significantly and the value per share will decrease, which may be disadvantageous to existing shareholders. increase.