Step against Elon Musk on Twitter

Twitter unanimously rejected Tesla CEO Elon Musk's offer to buy the company.

Management has agreed to a limited-term shareholder rights plan to prevent Tesla and SpaceX CEO Elon Musk from buying the company.

After Elon Musk offered to buy Twitter at $54.2 per share, Twitter took a measure called "poison pill".

In the statement, it was reported that the board approved the plan after an unsolicited, non-binding offer to buy Twitter.

It is stated that the said measure protects the right of existing shareholders other than potential buyers to buy more shares in the company at a lower price.

'15 PERCENT SHARE' LIMIT
It is noted that the plan will come into play if Musk or another investor buys more than 15 percent of the company's shares.​​

It is stated that this measure taken by the Twitter Board of Directors cannot stop Musk's purchase attempt, but may make the purchase more expensive or force Musk to sit at the negotiation table.

Musk, who previously bought a 9.2 percent stake in Twitter, made an offer of $54.2 per share for the entire Twitter, in his statement to the US Securities and Exchange Commission (SEC).

In the letter he wrote to Twitter Chairman Bret Taylor, Musk stated that since he bought shares from Twitter, he understood that the company would not develop in its current form, and that Twitter should be transformed as a private company.

Musk, who actively uses Twitter, has more than 80 million followers on the platform. It is stated that Musk's current assets are over $ 260 billion.

On the other hand, on April 11, Twitter CEO Parag Agrawal announced that Elon Musk, who bought shares from the company, would not be on the Twitter Board of Directors, which he had previously announced.

Meanwhile, Twitter's former shareholders filed a complaint in New York state court against Musk for violating the law in purchasing company stock. Shareholders claimed that by announcing the purchase of Twitter shares late, Musk prevented the shares of the social media company from rising, thereby harming some former shareholders.