| Monday, 18 April 2022 |
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Musk’s out for the kill, Twitter’s got a poison pill, but India Inc doesn’t quite use it still… Why? Anand’s got the answer for you today. Alongside the next part of the series on building a big retirement corpus
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Poison pill? Sorry, we are Indian
Will Elon Musk succeed in his hostile takeover attempt of Twitter? Not if Twitter’s board has its way; it’s armed itself with a poison pill.
Essentially, the Twitter board has, through a “shareholders’ rights plan”, enabled its shareholders (other than Musk, of course) to buy additional shares at a discount to the market price if Musk ups his stake beyond a certain threshold.
The hope is that the additional shares will dilute Musk’s shareholding, make it mighty costly for him to buy more, and thus thwart his takeover bid.
Unstoppable force meets immovable object? Maybe. But the best laid plans of birds, mice and men often go awry. Meanwhile, it’s popcorn time as the maverick and the mighty slug it out.
