Twitter resorts to the “toxic pill” plan to prevent Elon Musk from taking possession

Twitter's board of directors has adopted a limited-term shareholder rights plan that may make it difficult for billionaire Elon Musk to take over the company, called the "poison pill", according to CNN.

The "poison pill" plan is an anti-capture tactic that preserves the right of shareholders to prevent a competitor from buying more shares at a significant discount, effectively diluting his stake in the company.

On Thursday, Musk made an offer to acquire all of the shares he does not own in Twitter for a value of $41.4 billion, according to a filing with the Securities and Exchange Commission.

Twitter's board of directors said, in a statement, that the plan aims to preserve the right of shareholders to acquire more shares in the company at a relatively cheap price, effectively reducing Musk's stake.

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