Takeovers are usually friendly affairs. Corporate executives engage in top-secret talks, with one company or group of investors making a bid for another business. After some negotiating, the companies engaged in the merger or acquisition announce a deal has been struck.
Twitter adopted a poison pill plan on April 15, shortly after Musk unveiled his takeover offer in a Securities and Exchange filing. There are many variants of poison pills, but they generally increase the number of shares, which then dilutes the bidder’s stake and causes them a significant financial loss.
Poison pills are useful in part because they can be adopted quickly, but they usually have expiration dates. The poison pill adopted by Twitter, for example, expires in one year.
I thought that was a Lake City Quiet Pill. Too much internet I guess.
So that’s why all of them are going bankrupt
Ha. Do they work when the potential buyer has more capital than the target? Let’s find out!
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