It's clear Twitter's board would 'rather burn the place to the ground' than be taken over by Elon Musk

Doug P. | 1:41 PM on April 15, 2022

Elon Musk’s offer to buy Twitter for over $40 billion would make stockholders a lot of money, but it’s clear the Board of Directors does not want that to happen:

CNBC: Twitter board adopts poison pill after Elon Musk's $43 billion offer to buy company

— Josh Caplan (@joshdcaplan) April 15, 2022

BREAKING: Twitter Board just put in place a “poison pill” preventing @elonmusk from acquiring a larger (15%) stake in the company — shareholder who disagree with the board have a couple options:
1. SUE (tho that will take some time) and/or,
2. VOTE THE BOARD OUT

— Trish Regan (@trish_regan) April 15, 2022

The announcement was made on a day when the market’s closed and will be until Monday:

Update: And now we know why they were waiting. A Poison Pill has just dropped into the milk … https://t.co/0sTlny5eIL pic.twitter.com/xolgGF4DmC

— Rasmussen Reports (@Rasmussen_Poll) April 15, 2022

From Investopedia:

What Is a Poison Pill?

The term poison pill refers to a defense strategy used by a target firm to prevent or discourage a potential hostile takeover by an acquiring company. Potential targets use this tactic in order to make them look less attractive to the potential acquirer.

Although they’re not always the first—and best—way to defend a company, poison pills are generally very effective.
[…]
When a company becomes the target of a hostile takeover, it may use the poison pill strategy to make itself less attractive to the potential acquirer. As the name indicates, a poison pill is analogous to something that’s difficult to swallow or accept. A company targeted for an unwanted takeover may use a poison pill to make its shares unfavorable to the acquiring firm or individual. Poison pills also significantly raise the cost of acquisitions and create big disincentives to deter such attempts completely.