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As described above, it would be like a stock dividend or split (except for the 15%) - no income, no capital gains, no dilution. In reality, this poison pill is
by mannykannot 5y ago
As described above, it would be like a stock dividend or split (except for the 15%) - no income, no capital gains, no dilution.
In reality, this poison pill is more complicated - from Matt Levine: "The main mechanism of the pill is that if Musk or anyone else acquires more than 15% of Twitter's stock, then every other Twitter shareholder will have the right to pay $210 to acquire $420 worth of Twitter stock (at then-current market prices)."
He also points out that this is moot except in the highly unlikely event that it is triggered - in which case, someone screwed up really badly.
- 988747 5y agoSo the discount for existing shareholders is only 50%? That still requires pretty significant investment from their side, what if they can't come up with enough money? Poison pill becomes uneffective, right?