Twitter is weighing a poison pill defense to thwart Musk's takeover bid

A poison pill defense strategy allows existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of the hostile party.

Twitter Inc.’s board is considering adopting a measure that would protect the company from hostile acquisition bids, according to people with knowledge of the matter, following billionaire Elon Musk’s unwelcome offer to take the company private.
 

One of the options under consideration is adopting a poison pill, known as a shareholder rights plan, said the people, who asked not to be identified discussing private deliberations. Twitter could announce the poison pill as soon as tomorrow. Another scenario under consideration is saying that the offer is too low, according to one person.

The Tesla Inc. chief executive officer on Thursday offered $54.20