A buyout firm has emerged to challenge Tesla Inc CEO Elon Musk's $43 billion bid for the company, Reuters said.
The New York Post reported on Thursday that Thoma Bravo, a technology-focused private equity firm, was considering a bid for Twitter.
Bravo, a technology-focused private equity firm has informed Twitter, that it is exploring the possibility of putting together a bid, people familiar with the matter said. Bravo has more than $103 billion in assets under management as of the end of December.
Twitter said on Friday it adopted a poison pill that would dilute anyone amassing a stake in the company of more than 15 percent by selling more shares to other shareholders at a discount.
Known formally as a shareholder rights plan, the poison pill will be in place for 364 days.
The move would not bar Musk from taking his offer directly to Twitter shareholders by launching a tender offer.
While the poison pill would prevent most Twitter shareholders from selling their shares, the tender offer would allow them to register their support or disapproval of Musk's offer, Reuters said.
Musk makes a offer to buy Twitter
Musk revealed last week that he had become Twitter's largest shareholder, with a 9.2 percent stake in the company.
Musk's offer price of $54.20 per share in cash is a 54 percent premium over the day before he began investing in Twitter and a 38 percent premium over the day before his investment was publicly announced.
Twitter shares rose 11 percent in premarket trading following the disclosure.
Musk revealed last week that he had become Twitter's largest shareholder, with a 9.2 percent stake in the company. Since then, analysts have speculated that this could be part of a ploy to stage a hostile take-over of the company.
‘‘Twitter has extraordinary potential. I will unlock it’,’’ was the Tesla CEO’s cryptic comment after the offer was made public.
The offer came with a veiled threat. ‘‘This is my best and final offer and, if it is not accepted, I would need to reconsider my position as a shareholder,’’ Musk warned.
He has been a vocal critic of Twitter in recent weeks, mostly over his belief that it falls short on free speech principles. The outspoken CEO told Bret Taylor, the Chairman of the Board: ‘‘I invested in Twitter as I believe in its potential to be a platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.
‘‘However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company. As a result, I am offering to buy 100 percent of the company.’’
Musk rejected an offer to join Twitter's board earlier this week after disclosing his stake in the company, a move which analysts said signalled his intention to take over the company, as a board seat would have limited his stake to below 15 percent.
Musk has amassed over 80 million followers since joining the site in 2009 and has used the platform to make several announcements.
(With inputs from Reuters, Agencies)
