Twitter’s board is considering a measure to help the company fend off a hostile takeover after billionaire Musk proposed to take Twitter private, according to people familiar with the matter. One of the options being considered by the board is a poison pill — a shareholder equity plan, said the people, who asked not to be named because the matter is not public.
Twitter could announce it as early as tomorrow. Poison pills allow existing shareholders to buy more shares at a discount, diluting the enemy’s ownership interest.
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Poison pills are commonly used when companies are attacked by activist investors or face hostile takeovers. Twitter shares fell 1.7% in New York on Thursday, reflecting sentiment that the deal could be rejected or failed.
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