Re:Twitter board adopts poison pill after Musk’s $43B bid to...
by Majromax on Friday April 15, 2022 @05:48PM
(#31046281)
> You’re categorically changing the profile of the stock.
Mechanically, it's not much different than an issue of new shares. From Twitter's announcement:
>> each right will entitle its holder [...] to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.
There's no obvious breach of fiduciary duty through this plan. Existing (non-Musk) investors get new shares, but Twitter also raises capital at the current market price.
Mechanically, it's not much different than an issue of new shares. From Twitter's announcement:
>> each right will entitle its holder [...] to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.
There's no obvious breach of fiduciary duty through this plan. Existing (non-Musk) investors get new shares, but Twitter also raises capital at the current market price.