By Sam Boughedda
Greenlight Capital revealed Monday that it acquired a stake in social media giant Twitter (NYSE:TWTR) last month after Twitter sued Elon Musk for attempting to pull out of a deal to acquire the company.
According to various reports, in the hedge fund's 4Q shareholder letter David Einhorn, Greenlight's founder, told investors they took a position in Twitter at an average price of $37.24 per share.
Einhorn was quoted as saying: "At this price there is a $17 per share of upside if TWTR prevails in court and we believe about $17 per share of downside, if the deal breaks. So we are getting 50-50 odds on something that should happen 95%+ of the time."
Twitter shares have declined 2.4% Monday to $40.60 per share, well below the $54.20 per share cash offer Musk made to acquire the social media company in April.