The hedge fund Greenlight bets against Elon Musk in the dispute over the Twitter takeover.
(Photo: Reuters)
Boston In the middle of the legal dispute between Twitter and Tesla boss Elon Musk, the hedge fund Greenlight Capital has announced that it will join the short message service. The shares were bought last month at an average price of $37.24, said founder David Einhorn in a Monday letter to investors, seen by Reuters news agency.
If Twitter prevails in the process, the course could rise by $ 17 relative to that. However, if the deal falls through, the result is likely to be a loss of $17. “So we have a 50-50 chance of something that should happen more than 95 percent,” Einhorn wrote. Twitter shares were just under $41 just before the US close on Monday.
Einhorn argued that the responsible court in the state of Delaware had good reason to force Musk to buy Twitter as agreed for $44 billion. If Musk now “lets it off the hook,” there will be many more such lawsuits.
In addition, through its judgments over the years, the court has “created a great deal of predictability in this area”. Years ago, half jokingly, he wrote that it was generally accepted as a fact “that Elon Musk is above the law,” Einhorn said. The trial is scheduled for October. Musk had requested an appointment in February.
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Einhorn and Musk have repeatedly fought each other on Twitter. For years, the hedge fund founder bet that Tesla stock would fall. Musk has withdrawn his offer to buy Twitter. With a lawsuit, the San Francisco-based social media company wants to force him to go through with the merger as agreed.
More: Why the Twitter takeover process is also a threat to Tesla shares