News - 14/07/2022
Elon Musk’s attempted takeover of Twitter came back into the spotlight when the billionaire decided to pull out of the purchase recently.
Since Musk’s offer to buy Twitter in early 2022, several corporate issues involved in the case have gained prominence in the media, including the term “poison pills”. Although little is known by the general public, it is a legal institute frequently used in developed capital market environments.
In open capital companies, whose shares with voting power are publicly traded and have several owners (pulverized capital), without a single controller, it is not uncommon to witness conflicts involving the acquisition of share control, the so-called hostile takeovers.
Faced with this reality, some companies have “poision pills”, statutory provisions that are capable of protecting shareholders and hindering an eventual hostile takeover.
