Twitter adopts 'poison pill' mechanism to shield itself from Elon Musk's takeover bid

Twitter's board of directors has unanimously adopted a limited-duration shareholder rights plan called a "poison pill" -- a corporate anti-takeover defense mechanism -- that may thwart Tesla Chief Elon Musk's attempts to acquire the social media company. The Board adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter. The "poison pill" provision, announced in a press release Friday, preserves the right for Twitter shareholders other than Musk to acquire more shares of the company at a relatively inexpensive price, effectively diluting Musk's stake.

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