According to the latest news:
Musk, the chief executive of Tesla and the world’s richest person, had offered to buy the social media platform for $43.4bn, arguing he wanted to release its “extraordinary potential” to support free speech and democracy across the world.
In response, Twitter’s board on Friday unanimously approved a plan that would allow existing shareholders to buy stocks at a substantial discount in order to dilute the holdings of new investors.
The method, known as a “poison pill” in the finance world, suggests Twitter will fight Musk to prevent a hostile takeover. It would go into effect if a shareholder were to acquire more than 15% of the company in a deal not approved by the board and expires 14 April 2023.
But... how is it legal for a company to target just one shareholder for dilution? Does this mean a company could just sell Twitter stock for $1/share until Elon's share becomes tiny?