PROVIDENCE, R.I. (AP) — Twitter said in a statement Friday that its board of directors has unanimously adopted a “poison pill” defense in response to Tesla CEO Elon Musk’s proposal to buy the company and take it private.
Twitter said the move, formally called a “limited duration shareholder rights plan,” aims to enable all its shareholders to “realize the full value of their investment” in the company by reducing the likelihood that any one person can gain control without paying shareholders a premium or giving the board more time.
Poison pills are often used to defend against hostile takeovers.
"The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders," the company said in a statement.
Musk offered to buy Twitter for $43 billion in cash. He currently owns about 9% of the company's stock.
The billionaire has taken issue with Twitter's ability to limit dialogue.
"Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company," Musk said in a filing with the Securities and Exchange Commission.