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Started By
Message
Poison Pill incoming
Posted on 4/14/22 at 1:38 pm
Posted on 4/14/22 at 1:38 pm
Josh Caplan
@joshdcaplan
WSJ: Twitter weighs poison pill to prevent Elon Musk from increasing stake significantly, per sources
10
Posted on 4/14/22 at 1:40 pm to aubie101
What does that mean?
Posted on 4/14/22 at 1:41 pm to Roll on Tigers
It means they are going to try to make twitter unattractive to musk. Maybe take on some debt or dilute shares.
This post was edited on 4/14/22 at 1:42 pm
Posted on 4/14/22 at 1:42 pm to Roll on Tigers
It means they are going to heavily water the stock to prevent a hostile takeover.
Except Musk hasn’t pushed for a hostile takeover, but an unsolicited buyout, and has said he will sell if turned down.
Except Musk hasn’t pushed for a hostile takeover, but an unsolicited buyout, and has said he will sell if turned down.
Posted on 4/14/22 at 1:42 pm to aubie101
quote:
WSJ: Twitter weighs poison pill to prevent Elon Musk from increasing stake significantly, per sources
Weighs it? Their lawyers are already crafting it. Take that shite to the bank
Posted on 4/14/22 at 1:43 pm to teke184
quote:
It means they are going to heavily water the stock to prevent a hostile takeover.
How do you water down the stock? By issuing more shares to exclusive buyers?
Posted on 4/14/22 at 1:44 pm to GumboPot
Effectively.
If the company has shares registered with the SEC that have not yet been issued, they are capable of issuing them to change the amount of stock available, raising the costs of a takeover.
If the company has shares registered with the SEC that have not yet been issued, they are capable of issuing them to change the amount of stock available, raising the costs of a takeover.
Posted on 4/14/22 at 1:45 pm to aubie101
quote:
Twitter weighs poison pill
Is the pill……… orange…. Perchance?
Posted on 4/14/22 at 1:45 pm to GumboPot
Triggers are put in place - cap the amount of stock acquired - then if exceeded, manipulate the price.
Posted on 4/14/22 at 1:46 pm to teke184
quote:
If the company has shares registered with the SEC that have not yet been issued, they are capable of issuing them to change the amount of stock available, raising the costs of a takeover.
I'm not following this.
How do you raise the costs of a takeover without raising the value of the company?
Posted on 4/14/22 at 1:47 pm to teke184
quote:
If the company has shares registered with the SEC that have not yet been issued,
They are called "shelved" shares
Posted on 4/14/22 at 1:48 pm to teke184
quote:However, the market will determine stock values and people holding stock may decide to dump Twitter if there's a threat, which Twitter can buy back.
If the company has shares registered with the SEC that have not yet been issued, they are capable of issuing them to change the amount of stock available, raising the costs of a takeover.
Posted on 4/14/22 at 1:48 pm to David_DJS
He has offered a fixed price of $54.20 per share.
Twitter, depending on what the company can issue, may be able to create tens of thousands of shares, if not more, out of nothing which Musk would have to buy for control.
Twitter, depending on what the company can issue, may be able to create tens of thousands of shares, if not more, out of nothing which Musk would have to buy for control.
Posted on 4/14/22 at 1:50 pm to teke184
quote:
Effectively.
If the company has shares registered with the SEC that have not yet been issued, they are capable of issuing them to change the amount of stock available, raising the costs of a takeover.
I have to believe Elon had financial advisors game this situation out before he struck. He's got to be hedging in some manner, like with options.
Posted on 4/14/22 at 1:50 pm to teke184
quote:
Twitter, depending on what the company can issue, may be able to create tens of thousands of shares, if not more, out of nothing which Musk would have to buy for control.
Musk isn't retarded. He'd just lower his per share offer to reflect the dilution, the offer for Twitter the company would remain the same.
This post was edited on 4/14/22 at 1:51 pm
Posted on 4/14/22 at 1:50 pm to aubie101
The deep state owns Twitter as a means to make the populace think their individual viewpoint is outnumbered . Control of it will never be allowed change hands.
Posted on 4/14/22 at 1:51 pm to David_DJS
I would be selling short right now.
Posted on 4/14/22 at 1:51 pm to teke184
quote:
Twitter, depending on what the company can issue, may be able to create tens of thousands of shares, if not more, out of nothing which Musk would have to buy for control.
Musk doesn't even need to own 100% of the shares to control the company. If he's rich enough to buy 100% in cash, one would imagine he could restructure his offer to buy a smaller percentage of the company if they created more shares. I'm no stock market expert at all, but I just don't see how they can "get creative" to compete with a guy rich enough to buy 100% of the company as it stand right now, especially a guy so rich he could light his existing shares on fire right now and not even blink.
This post was edited on 4/14/22 at 2:08 pm
Posted on 4/14/22 at 1:53 pm to HubbaBubba
quote:
I would be selling short right now.
Why? How would tanking the value of Twitter make it more difficult for Musk to acquire it?
Posted on 4/14/22 at 1:53 pm to David_DJS
Musk isn’t stupid but it means that his initial offer won’t hold up and that a new offer would need to be made.
A new offer would be less profitable for shareholders, meaning less pressure to take the deal, but also raises the risks IIRC of the company fricking itself up while holding off the takeover.
I’m fuzzy on the details because it has been too long but Roy E Disney attempted a takeover of Polaroid in the late 80s and, while Polaroid was able to hold out, I seem to remember that it did permanent damage to a company that was already in a decline.
A new offer would be less profitable for shareholders, meaning less pressure to take the deal, but also raises the risks IIRC of the company fricking itself up while holding off the takeover.
I’m fuzzy on the details because it has been too long but Roy E Disney attempted a takeover of Polaroid in the late 80s and, while Polaroid was able to hold out, I seem to remember that it did permanent damage to a company that was already in a decline.
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