Shulou(Shulou.com)11/24 Report--

Beijing time on September 14 evening news, According to reports, Although Twitter"whistleblower" The disclosure for Tesla CEO Elon Musk (Elon Musk) abandoned the acquisition of Twitter increased chips, But a number of hedge funds, Including Greenlight Capita and Pentwater Capital Management, Do not think Musk will eventually get what he wants.

Twitter's lawsuit against Musk for breach of contract (abandonment of Twitter acquisition) will start on October 17. At present, several hedge funds that bought Twitter stock, options or bonds expect Musk to lose at that time, and the court will ask Musk to continue to execute the acquisition.

That could be a boon for struggling event-driven funds. So-called event-driven funds typically bet on mergers and acquisitions between companies. Such funds have fallen an average of 4% over the past year, according to Pivotal Path, a research firm.

David Einhorn, founder of Greenlight Capital, believes Delaware Chancery Court has reason to force Musk to complete the acquisition. If the court lets Musk off the hook,"Einhorn said," there will be more buyer renegades and lawsuits in the future. "

Greenlight Capital estimates there is a 95% chance the deal will close. Greenlight Capital bought Twitter shares in July at an average price of $37.24 a share. Mr einhorn expects Twitter's share price to rebound once it wins. Twitter shares closed at $41.74 yesterday, compared with Musk's offer price of $54.20.

Pentwater Capital Management, a hedge fund led by Matthew Halbower, bought more than 18 million Twitter shares in the second quarter of this year, making it Twitter's seventh-largest shareholder with a 2.4% stake. Halbauer also expects Musk to be forced to complete the deal.

So far, the market seems to support that view. Stocks suffered their biggest drop in more than two years on Tuesday. Twitter shareholders voted to approve Musk's acquisition of Twitter that day, sending Twitter shares up 0.8 percent to close at $41.74, the second-best performer in the S & P 500.

Twitter hasn't closed above $44.50 since May, when Musk first hinted at a possible abandonment of the acquisition. Some analysts and investors, including Einhorn, said Twitter shares would fall to $20 a share if the deal broke down.

Some investors and analysts also said the two sides could reach a settlement before the trial, with Musk expected to buy Twitter for nearly $50 a share, compared with a previous deal of $54.20.

Carronade Capital Management is a $900 million multistrategy credit hedge fund that invests in Twitter's multiple debt and stock portfolios. The fund believes the deal will eventually be completed after trial or through settlement.

Chris Pultz, an investment manager at investment firm Kellner Capital, believes Musk and Twitter could reach a settlement before trial. Eventually, Musk will buy Twitter for 10 to 15 percent less than the original deal price.

But Cabot henderson, an m & a strategist at Jones Trading, believes Twitter is less willing to accept a lower price now because the company has dominated pretrial hearings, making it less likely than previously thought to settle.

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