Twitterʼs board of directors has approved a shareholder protection plan that will not allow businessman Elon Musk to buy 100% of Twitter shares.
A press release from the company said that the plan will run until April 2023.
It does not allow to increase the share in the company by more than 15% without the consent of all shareholders. In this case, to redeem a controlling stake each shareholder must get paid and the board of directors have to give consent to the buyer.
Saudi Prince Al-Walid ibn Talal Al Saud, one of Twitterʼs largest shareholders, has already spoken out against Muskʼs Twitter purchase.
"I do not believe that the price offered by Musk ($54.20 per share) is close to the real value of Twitter, given the companyʼs growth prospects. As one of the largest and long-term shareholders of Twitter, I reject this offer," he tweeted.
- On April 5, Elon Musk bought a 9.2% stake in Twitter, after which the company offered him a seat on the board. Musk refused and on April 14 offered to buy Twitter for $43 billion.