Elon Musk's Close Friend David Einhorn Believes Twitter Acquisition Will Go As Agreed

Hedge fund manager Greenlight Capital, David Einhorn, has a relationship with Elon Musk. (photo: twitter @davidein)

JAKARTA - Greenlight Capital's hedge fund manager, David Einhorn, is known to have a long history with entrepreneur Elon Musk. Latest news in a letter on Friday, October 21, he said he hoped Musk's deal to buy Twitter Inc. will "close at or near the originally agreed price.

Einhorn told investors in August that he had bought shares on Twitter. Now he firmly believes the lawsuit in Delaware that could determine the fate of the deal "goes well for TWTR."

The hedge fund acquired a new stake in the social media company last July when Twitter demanded to force Elon Musk to buy the company even as the billionaire said he had changed his mind about the deal.

Earlier this month, Musk reversed course again and said he would proceed with the deal on original terms.

A Delaware judge ordered a pause for Twitter's lawsuit against Musk, giving the billionaire until October 28 to close the deal.

In August, Einhorn said in a letter to investors that the Delaware Court, the most prominent business court in the United States, had grounds to force Musk to complete his purchase plan. Otherwise, it will leave the door open to a future buyer's remorse lawsuit.

Einhorn companies pay an average of 37.24 US dollars per share of Twitter, which is now trading at 50 dollars in Friday morning trade.

"We hope that one way or another, the deal will close at or near the price originally agreed upon," Greenlight said. This refers to a price of $54.20 per share originally proposed by Musk.

Greenlight's manager said the investment in Twitter was "inherently short-term," and he added the hedge fund plans to exit its position following the resolution of the platform sale.

Greenlight Capital posted a 4% return in the third quarter, after deducting costs and expenses, and is up 17.7% in the year to September.