Twitter board adopts poison-pill defense to block Elon Musk takeover

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Twitter board adopts poison-pill defense to block Elon Musk takeover
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Twitter moves to block Elon Musk's proposed takeover and adopts a strategy, known as 'poison pill,' often used to intercept hostile corporate bids.

SAN FRANCISCO — Twitter moved Friday to block tech baron Elon Musk's proposed takeover of the social media company, adopting a strategy known as a"poison pill" that's often used to intercept hostile corporate bids.

The Twitter board of directors voted unanimously to adopt the strategy, which is formally known as a shareholder rights plan, the company said in a"The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter," the San Francisco-based company said.the poison-pill defense. The strategy allows existing shareholders other than the person attempting the takeover to buy additional shares at a discount, diluting the equity of someone like Musk.

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