By Svea Herbst-Bayliss<\/p>\n
NEW YORK, April 23 (Reuters) – Elon Musk’s SpaceX will count on the enhanced protection of Texas law to potentially fend off any hostile bidder or activist investor pushing \u200cfor changes at the company, according to a regulatory filing seen by Reuters.<\/p>\n
SpaceX is preparing \u200cfor what could be the largest initial public offering in history and could take space exploration from a speculative venture to a \u200bmainstream investment.<\/p>\n
“Some provisions of Texas law, and our charter and our bylaws contain provisions that could make the following transactions more difficult: acquisitions of us by means of a tender offer, a proxy contest or otherwise, or removal of our incumbent officers and directors,” SpaceX said in its S-1 filing, which was seen by Reuters.<\/p>\n
The \u200canti-takeover statute under Texas law is “expected to \u2060discourage coercive takeover practices and inadequate takeover bids,” the filing added.<\/p>\n
Instead, anyone who might want to make a play for SpaceX, the filing said, would need to “first \u2060negotiate with us.”<\/p>\n
The provisions could calm investors’ nerves at a time when companies face pressure from activist shareholders who often launch campaigns for change by threatening to unseat directors in a proxy fight.<\/p>\n
During the first quarter of 2026, activist \u200binvestors \u200blaunched 41 campaigns at U.S. companies, marking an increase \u200bof 3% from the previous year, according to \u200cBarclays data. Activists targeted technology and industrial companies most frequently.<\/p>\n
For SpaceX, which manufactures its Starship rockets in Starbase, Texas, it makes geographic sense to select the state as its corporate home instead of picking Delaware, where the majority of Fortune 500 companies are incorporated, lawyers and analysts said.<\/p>\n