Twitter’s adoption of a so-called poison pill tactic makes it harder for a hostile takeover, the company said on April 18.
Twitter’s board on Friday announced that a person or entity buying at least 15 percent of Twitter’s outstanding stock without approval would trigger the poison pill, which enables other stockholders to buy shares at a lower price.
The move was made “to protect stockholders from coercive or otherwise unfair takeover tactics,” Twitter said in filings Monday with the U.S. Securities and Exchange Commission.
“In general terms, it works by imposing a significant penalty upon any person or group that acquires 15 percent or more of the shares of common stock without the approval of the board,” the company said.
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