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posted ago by lsdQ ago by lsdQ +374 / -0

https://www.wsj.com/articles/twitter-moves-to-block-elon-musk-from-increasing-stake-11650040204?mod=e2fb

Twitter Moves to Block Elon Musk From Increasing Stake

The social-media company takes the step a day after the tech entrepreneur made a $43 billion unsolicited takeover bid

Twitter confirmed its board would review Elon Musk’s proposal.

PHOTO: LAURA MORTON FOR THE WALL STREET JOURNAL

By Cara Lombardo

Updated April 15, 2022 12:37 pm ET

Twitter Inc. moved to prevent Elon Musk from significantly increasing his stake the day after he made a $43 billion unsolicited takeover bid for the social-media company.

The company on Friday adopted a so-called poison pill that makes it difficult for him to increase his stake beyond 15%. The billionaire founder of Tesla Inc. already owns a more than 9% stake that he revealed earlier this month.

The Wall Street Journal reported Thursday that Twitter was weighing such a move.

Poison pills, also called shareholder-rights plans, are legal maneuvers that make it hard for shareholders to build their stakes beyond a set point by triggering an option for others to buy more shares at a discount. They are often used by companies that receive hostile takeover bids to buy themselves time to consider their options.