In the midst of litigation between Twitter and Tesla-Boss Elon Musk the hedge fund Greenlight Capital has announced an entry into the short message service. The company bought shares last month at an average price of $37.24, founder David Einhorn wrote in a letter to investors seen by Reuters on Monday.
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 of the time,” Einhorn wrote. the Twitter stock
was 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. 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. Musk has withdrawn his offer to buy Twitter.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.
Observers consider a judicial defeat of Musk and thus a forced fulfillment of the takeover agreement to be quite conceivable. It is also possible that the multi-billionaire would pay Twitter a contractual penalty of up to one billion dollars.