Boston In the middle of the legal dispute between Twitter and Tesla CEO Elon Musk, the hedge fund Greenlight Capital has announced an entry into the short message service. The shares were bought at an average price of $ 37.24 last month, according to a letter from founder David Einhorn to investors on Monday, which was seen by the Reuters news agency.
If Twitter prevails in the process, the price could rise by 17 dollars relative to it. However, if the deal breaks down, a minus of $ 17 is likely to be the result. “So we have a 50-50 chance of something that should happen more than 95 percent of the time,” Einhorn wrote. Twitter’s stock was close to $41 on Monday just before the U.S. close.
The competent court in the state of Delaware has good reason to force Musk to buy Twitter as agreed for $ 44 billion, Einhorn argued. If Musk “lets it off the hook” now, there will be many more such lawsuits.
In addition, the court has “created a great deal of predictability in this area” through its judgments over the years. Years ago, he wrote half-jokingly that it was generally accepted as a fact “that Elon Musk is above the law,” but Einhorn went on to explain. The trial is scheduled for Oct. Musk had asked for an appointment in February.
Einhorn and Musk have repeatedly engaged in word battles over Twitter. The hedge fund founder bet for years 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 Musk has withdrawn his offer to buy Twitter.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.