The board voted unanimously to adopt the plan.
Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter's outstanding common stock without the board's approval, other shareholders will be allowed to purchase additional shares at a discount.Such a move is a common way to fend off a potential hostile takeover by diluting the stake of the entity eying the takeover.
"The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders," the company said in a press release.
Twitter noted that the rights plan would not prevent the board from accepting an acquisition offer if the board deems it in the best interests of the company and its shareholders.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk offers to buy Twitter for $43 billion in cashBREAKING: Elon Musk has offered to buy Twitter for $54.20 a share in cash, or about $43 billion, according to documents filed with the SEC.
Read more »
Elon Musk offers to buy 100% of Twitter for $43 billionElon Musk made a proposal to buy the remaining shares of Twitter that he doesn't already own, offering $54.20 per share of the company's stock.
Read more »
Elon Musk offers to buy Twitter for $43 billionDescribing Twitter as having 'extraordinary potential,' Musk said his unsolicited bid is his 'best and final offer.'
Read more »
Elon Musk offers to buy Twitter for $43 billion | Digital TrendsElonMusk has offered to buy Twitter for $43 billion, according to a filing with the U.S. Securities and Exchange Commission.
Read more »
Tesla CEO Elon Musk offers to buy Twitter for $43 billionElon Musk is offering to buy Twitter for $43 billion, saying the social media platform he has criticized for not living up to free speech principles needs to be transformed as a private company.
Read more »
Elon Musk offers to buy Twitter for $43 billion in bid to take the company privateTesla CEO Elon Musk is offering to buy Twitter, saying the social media platform he has criticized for not living up to free speech principles needs to be transformed as a private company
Read more »