Sign up now for FREE unlimited access to Reuters.com Register April 15 (Reuters) – Twitter Inc. (TWTR.N) adopted a “poison pill” on Friday, a standard takeover defense that limits Elon Musk’s ability to increase his stake in the social networking platform as a takeover company appeared for to challenge the $ 43 billion bid for the company. Thoma Bravo, a technology-focused private equity firm that had more than $ 103 billion in assets under management until the end of December, told Twitter it was exploring the possibility of bidding, people familiar with the matter said. read more It is unclear how much Thoma Bravo would be willing to bid and there is no certainty that such a competitive bid will take place, the sources warned, asking not to be named because the matter is confidential. Sign up now for FREE unlimited access to Reuters.com Register A spokesman for Thoma Bravo declined to comment, and Twitter did not immediately respond to a request for comment. The New York Post reported Thursday that Thoma Bravo was considering a Twitter bid. The move increases the range of more private equity firms competing for Twitter. The global private equity industry is in dry dust at about $ 1.8 trillion, according to data provider Preqin. Unlike large tech groups, most acquisition companies will not face antitrust restrictions when acquiring Twitter. It remains possible for a private equity firm to bolster Musk’s offer by partnering with him instead of challenging him. However, Musk’s criticism of Twitter’s reliance on advertising for most of its revenue has made some private equity firms afraid to partner with him, industry sources said. This is because a strong cash flow makes it much easier to finance a leverage acquisition. Twitter has more than $ 6 billion in cash on its balance sheet, and its annual cash flow is approaching $ 700 million, giving banks some comfort in considering whether they should provide debt for a deal. However, a leverage takeover of Twitter could be the largest of all time, potentially requiring many acquisition companies and other key institutional investors to work together. Musk is the richest man in the world with a net worth set by Forbes at $ 265 billion. However, he has drawn a line about how much he is willing to pay. He told Twitter on Wednesday that his $ 54.20 bid per share for the company was his “best and final bid” and that he would reconsider his position as Twitter shareholder if rejected. Musk owns more than 9% of Twitter, making him the largest shareholder after Vanguard Mutual Fund. Musk wrote on Twitter on Thursday that Twitter shareholders should have a say in his offer and posted a poll on Twitter in which most users agreed with him. Twitter’s board is still evaluating Musk’s bid and will submit it to the company’s shareholders for a vote only if approved. Shares of Twitter fell on Thursday, indicating that most investors expect the company’s board to reject Musk’s offer as insufficient and delicate in terms of funding details. read more Twitter announced on Friday that it had adopted a poison pill that would reduce anyone with a stake in the company of more than 15% by selling more shares to other shareholders. Formally known as the shareholder rights plan, the poison pill will be in effect for 364 days. The move would not prevent Musk from sending his bid directly to Twitter shareholders, launching a competitive bid. While the Poison pill would prevent most Twitter shareholders from selling their shares, the offer would allow them to declare their support for or reject Musk’s offer. Sign up now for FREE unlimited access to Reuters.com Register References by Greg Roumeliotis and Krystal Hu in New York Additional reports by Arunima Kumar and Kannaki Deka in Bengaluru. curated by Jonathan Oatis, Franklin Paul and Nick Zieminski Our role models: The Thomson Reuters Trust Principles.