Twitter shares rise after revealing a plan to prevent Elon Musk's takeover of the company

The share price of the popular social networking platform Twitter rose today, Monday, after the company announced a plan to prevent the acquisition of the company by billionaire Elon Musk and to cancel the registration of its shares in the stock exchange.

And the Bloomberg news agency indicated that the US Securities and Exchange Commission confirmed Twitter’s plan to address the takeover attempt, and it includes Twitter’s issuance of a new amount of shares that all its shareholders except for Musk can buy at a reduced price.

The plan also includes "imposing a significant penalty" on any person or entity that acquires more than 15% of Twitter's shares without obtaining the approval of the board of directors.

Musk currently owns more than 9% of Twitter's shares.

Twitter's share price rose this morning by 2.9 percent to $46.39, and informed sources said that Twitter is finding interest from other parties in acquiring it.

Twitter said in a statement, "The board of directors adopted the shareholders' equity plan following the arrival of a non-binding offer to acquire Twitter, and the rights plan expires on April 14, 2023.

The rights plan reduces the possibility of any entity, person, or group acquiring a controlling share of Twitter shares through the cumulative purchase of its shares on the open market, without paying a price higher than the market price of the share to all shareholders, or without giving the board of directors sufficient time to reach a sound decision and take The necessary steps to achieve the interests of shareholders.

It is reported that the American billionaire, Elon Musk, the president and owner of the American electric car maker “Tesla”, offered to buy all the shares outstanding on the social networking platform Twitter.

Musk sent a letter to Twitter containing a non-binding proposal to purchase all of his outstanding common stock, in full cash, and value the common stock at $54.20 per share.

"Twitter needs to be privatized," Musk said. "As a result, I bid 100% of Twitter for $54.20 per share in cash, a 54% difference in value from the day before my investment in Twitter, and a 38% difference in value from The day before my investment was publicly announced. My offer is the best I have and it is my last offer, and if it is not accepted, I will need to reconsider my position as a shareholder.”