What are poison pills? Is there regulation for them?
The measure was created in 1982 by the American Martin Lipton, to prevent a shareholder or a third party from acquiring a significant percentage of shares without there being a counterweight to this phenomenon. Our partner, Mateus Lopes da Silva Leite, explained in an interview for ESTADÃO de S.Paulo’s E-Investidor the controversial measures applied by Twitter’s Board of Directors that aimed to preserve the interests of management in the face of the company’s acquisition by billionaire Elon Musk last week.
“Thanks to poison pills, when a very large investor comes on the scene, the other shareholders can buy shares at below market value to dilute the new partner and prevent him from taking control of the company,” he says.
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