Just as I told you repeatedly, for months and months, the celebrity CEO signed a binding contract, the crap he invented trying to escape was not going to work, and he was going to end up owning the bird company.
A hedge fund friend of mine, whom you all know, is very happy right now.
Elon Musk
Twitter
Matthew Halbower
Pentwater Capital
Florida hedge fund could reap around $200 million from big arbitrage bet on Twitter
Pentwater Capital, a Florida-based hedge fund, became one of Twitter’s biggest shareholders in the second quarter.
Twitter shares were trading well below the price Elon Musk had agreed to pay, and Pentwater was betting the deal would ultimately close at the contract value.
The firm is now poised to see a profit in the hundreds of millions of dollars.
Among the big winners in Elon Musk’s agreement to follow through with his deal to buy Twitter is an activist hedge fund based in a coastal Florida city that was just wrecked by Hurricane Ian.
Pentwater Capital, a 15-year-old firm with close to $5 billion in assets, bought a 2.4% stake in Twitter during the second quarter. The purchase of 18.1 million shares cost Pentwater roughly $725 million.
At $54.20, the price Musk has agreed to pay for Twitter, Pentwater’s stake would be worth about $980 million. The stock closed up 22% on Tuesday at $52, which is still below the acquisition price, signaling that Wall Street isn’t entirely convinced the deal will close. – Source
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