Gov. DeSantis said Twitter's choice to adopt a “poison pill” defense that makes it difficult for Elon Musk to buy the company without the board of directors’ approval amounted to a political decision and not a smart business move.
– After Twitter dropped a major roadblock in front of Elon Musk’s effort to take over the company, Gov. Ron DeSantis announced Tuesday that Florida -- an investor in Twitter through the state’s pension fund -- is looking into what action it can take against the board of directors.that makes it difficult for Musk or any other investor to buy Twitter without the board of directors’ approval amounted to a political decision and not a smart business move.
“I don’t want to expend resources just to kind of be able to send out a press release or something. I mean, we really want to feel like we have a solid theory to be able to win,” DeSantis said. “But I can tell you just looking at it, most of the time the people I talk to would say if you’re on the board in that situation, you really do need to sell. It’s a massive return for your shareholders. I mean, most people and their investment vehicles are not making 20% in a year.
When he made his offer public, Musk provided no details on financing, but such a disclosure could improve his chances. He could raise money by borrowing billions using his stakes in Tesla and SpaceX as collateral, and he could bring in other investors.The poison pill would give stockholders as of April 25 the right to buy one one-thousandth of a share of preferred stock for each common share they own, at a price of $210.
Shareholders who exercise the rights and buy preferred stock at $210 would get $420 in Twitter stock or assets, he said. That would be more than Twitter can afford to pay and likely would send the company into receivership, Cox said. "They’re sitting right now on top of a poison pill that’s a bit of a showstopper. From a corporate law perspective, they’re on pretty solid footing right now if they just keep that in place and say they’re not comfortable bargaining at this stage.”
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