Twitter board defends itself against Elon Musk's takeover offer

Elon goes all out with Twitter purchase

Twitter announced 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 explained that the measure, formally called a "limited duration shareholder rights plan", is intended to allow its investors to "realize the full value of their investment" in the company, reducing the probability that a single person can obtain control without paying shareholders a premium or giving the board more time.

So-called "poison pills" are often used to defend against a hostile takeover.

The announcement came after billionaire Musk offered to buy Twitter for more than $43 billion. Musk has accused Twitter of not living up to the principles of respect for freedom of expression.

Musk has accused that the social network should delist and become a private company. In a document sent to stock market regulators in the United States, Twitter Inc. explained that Musk - who is currently the largest shareholder of the platform - sent a letter to the company on Wednesday with a proposal to acquire the rest. Musk — who is the CEO of the Tesla car company — offered $54.20 per share, that is, an offer valued at more than $43 billion.

The businessman said that this was his best and last offer, but did not offer details about the financing. Offer is non-binding and subject to financing and other conditions.

Musk's offer is a new chapter in his relationship with Twitter. In regulatory filings in recent weeks, the businessman revealed that he has been buying shares in almost daily batches since January 31 and that he now owns 9% of Twitter. Only the fund manager Vanguard Group controls more shares of the platform.

Musk has been highly critical of the social media platform in recent weeks, especially as he believes it falls short of free speech principles. The company has angered supporters of Donald Trump and other far-right politicians whose accounts were suspended for violating its content guidelines on violence, hate or misinformation. Some of Musk's tweets have also caused legal problems before.