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Twitter shareholder rights plan, often called ‘poison pill’ to protect itself from a hostile takeover
Buyout firm Thoma Bravo LP has expressed its interest to acquire Twitter Inc (NYSE: TWTR), which is expected to compete with Tesla Inc (NASDAQ: TSLA) Chief Executive Elon Mu sk’s $43 billion offer.
The Illinois-based private equity firm has informed Twitter that it is exploring the possibility of putting together a bid, Reuters reported on Friday, citing people familiar with the matter.
Thoma Bravo had more than $103 billion in assets under management (AUM) as of the end of December.
While it is unclear how much the private equity firm would be prepared to offer for the social media company, there is also no certainty that such a rival bid will materialize, the sources told the news outlet.
The New York Post on Thursday reported that Thoma Bravo was considering a bid for Twitter.
Twitter on Friday adopted a limited-duration shareholder rights plan, often called a “poison pill,” to protect itself from a hostile takeover.
Tesla’s CEO last week disclosed that he took a 9.2% stake in Twitter worth $2.89 billion.
On Wednesday, after the market closed, Musk made a bid to acquire Twitter for $54.20 per share in cash, representing an 18% premium over that day’s closing price.
“It’s a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced,” he said.
However, after a few hours of making the takeover bid, Musk turned back on his offer to buy Twitter, stating that he was “not sure” he’d be able to buy the social media company.
Picture Credit: TeleTrader
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