Elon Musk no longer wants to buy Twitter, in October a court will decide whether he can get out of the takeover. The hedge fund Greenlight Capital calculates bad odds and buys into the social media giant. Its founder is no stranger to Musk.
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 company bought shares last month at an average price of $37.24, founder David Einhorn said in a Monday letter to investors.
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, the court has “created great predictability in this area” through its judgments over the years. 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. Einhorn and Musk have repeatedly engaged in verbal battles on Twitter. For years, the hedge fund founder bet that Tesla stock would fall. In early July, Musk withdrew his offer to buy Twitter that he had made in April. With a lawsuit, the San Francisco-based company wants to force him to go through with the merger as agreed.
