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Elon Musk: 'Poison pill' is preferred stock

Friday | 15.4.22 | Last Updated 2022-04-15T19:24:55Z
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Elon Musk: 'Poison pill' is preferred stock

 After a more than 9% buyout, which occurred on April 4, Elon Musk tried to seize 100% of Twitter, offering $54.20 per share for a total offering of $41.39 billion. Initiatives that the company immediately dislikes Twitter adopted a poison pill to protect itself from enemy operations, in what was a move to protect itself from Elon Musk. 

The Twitter company has adopted a plan to reduce the possibility that an entity could gain control by raising shares on the open market without awarding a premium to shareholders and without giving the board time to make a proper judgment. The plan is triggered if an entity, person or group acquires 15% or more of the outstanding shares in a transaction not approved by the board. According to a Bloomberg agency, Twitter has chosen to rely on two investment banks to implement its defensive strategy. 

JPMorgan has clashed with Musk in the past: last year it initiated a $162 million lawsuit against Tesla following Musk's 2018 tweet, in which he stated that he wanted to wipe out the electric car giant. In a court filing, JPMorgan explained that the warrants sold by Tesla forced the bank to review and adjust its position after Musk tweeted that he secured funding for Tesla's delisting at $420 per share. 

When Tesla later announced that he would be leaving operations, the value of the warrants changed further and JPMorgan was forced to change its position. Tesla has dismissed the accusations, accusing the bank of trying with its behavior only to gain an "inappropriate benefit" from the electric car giant's share price.
After a more than 9% buyout, which occurred on April 4, Tesla owners tried to seize 100% of Twitter, offering $54.20 per share for a total offering of $41.39 billion. An initiative that the company immediately does not want. Musk says he is not interested in acquiring the social platform to profit from it, but in the future of civilization.

 

 It is a tool used by companies to resist attempts to climb. In the United States in particular, it is very common to find groups in which administrators control a company without even owning stock (but only options), making the company up for grabs. The poison pill's job is to prevent people interested in taking over a company from getting a majority stake. Typically, poison pills are preferred stock that allows shareholders to activate a 'barrier' at the time of a takeover attempt.

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