Twitter Inc. on Friday came up with a ‘poison pill’ strategy to thwart $43 billion cash takeover bid by billionaire entrepreneur Elon Musk.

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As per the ‘poison pill’ strategy the rights will become exercisable if anyone acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board.

The rights plan will expire on April 14, 2023, Twitter said.

Musk made the bid on April 13 in a letter to the board of Twitter and his $54.20 per share offer price was disclosed in a regulatory filing. It represents a 38 percent premium to the April 1 close of Twitter. April 1 was the last trading day before the Musk's over 9 percent stake in the firm was made public

After his TED talk on Thursday, Musk hinted at the possibility of a hostile bid in which he would bypass Twitter’s board and put the offer directly to its shareholders, tweeting: “It would be utterly indefensible not to put this offer to a shareholder vote.”

Just few days back Musk rejected a seat on the board of Twitter.

(Edited by : Sudarsanan Mani)