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Jack Dorsey slams Twitter board amid Elon Musk takeover push

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Following Twitter’s adoption of a “poison pill” to block an attempt by Elon Musk to takeover the company, its co-founder Jack Dorsey has deplored the micro-blogging giant’s board.

Quoting a user, Jack Dorsey labelled the board as “consistently the dysfunction of the company”.

Jack Dorsey had handed over the baton to Indian-origin Parag Agrawal last November, but he still remains a board member until next month with his 2.2% share.

Earlier, after the social media company took steps to ward off his takeover attempt, Elon Musk had said that the economic interests of Twitter Inc’s board were not aligned with shareholders. The richest man in the world was responding to a tweet about the board members’ stock holdings, saying that with the departure of Jack Dorsey, the board “collectively owns almost no shares”.

The Tesla Inc chief officer had on 14 April offered $ 54.20 a in for Twitter, valuing the company at $ 43 billion. Musk, who said it was his “best and final” offer, had already accrued a stake of more than 9% in Twitter since earlier this year.

In addition to Musk’s offer, Twitter has been fielding takeover interest from other parties, including technology-focused private equity firm Thoma Bravo. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are advising Twitter.

Twitter set up a shareholder plan the next day that could thwart Musk’s hostile acquisition bid. The plan is exercisable if a party acquires 15% of the stock without prior approval and seeks to ensure that anyone taking control of Twitter through open market accumulation pays all shareholders an appropriate control premium.

Responding to a subsequent tweet by a user about whether the so-called poison pill plan could amount to “criminal negligence”, Musk said the plan could be “more of a concern about other potential bidders” instead of “just” him.

A poison pill defence strategy allows existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of the hostile party. Poison pills are common among companies under fire from activist investors or in hostile takeover situations.

Since making the offer, Musk has been actively posting on his Twitter account in what appears to be a social media campaign to sway public opinion in favour of his bid.

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