Twitter Takes the Poison Pill
Offered by Rob Taylor
Recently, you might have heard about Twitter using a “poison pill” option to fend off a hostile takeover. While it sounds like something a Wicked Queen would use in a fairy tale, the poison pill is not uncommon.
A hostile takeover happens when a company doesn’t want to change hands and takes measures to prevent it. The defensive move is the poison pill, a business strategy that makes the takeover more difficult or expensive. Such a move is usually part of a shareholder rights plan.
In the case of Twitter, the company plans to offer shareholders a discounted price on stock should a single entity purchase more than a 15% stake.
Questions about the poison pill practice? There's no need to get “twitterpated.” We’d love to discuss it with you.
DISCLAIMER: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of Global View Capital Advisors. LTD (GVCA) or any of its affiliates. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.