Shares of Twitter rose on Wednesday After the hedge fund Hindenburg Research revealed that it bought a stake in the social network’s equity, given that it could Wins in court against Elon Musk.

This was confirmed by Nathan Anderson, the founder of the Hindenburg Research Foundation of the agency. AFP that his firm took the stake “Significant, but less than 5% on Twitter”The limit above which an investor must report to the Securities Regulatory Authority in the US (SEC).

Around 5:20 GMT, shortly before closing time A day in New YorkTwitter shares are up 8.10% to $36.82.

Anderson pointed out This is a first for Hindenburg, which has never made the buyer’s position public beforeBecause his investor profile is primarily bets against the stocks in the market.

for financial Twitter has a “solid track record” in its legal proceedings, which began Tuesday before a Delaware court. (Eastern United States) targeting mogul Elon Musk honoring his commitment to acquire the social network.

Directors of Twitter They chide Musk for turning down the buyout for bogus reasons.

Elon Musk, in turn, emphasized this Twitter has reduced the number of bots and spam (spam) on the social network and that it did not provide enough information about fake accounts, which Twitter denies.

On the topic of “bots”, those automated accounts are not considered as individual usersis probably the worst excuse Musk could have chosen to close the dealKnowing that was obviously the reason he got involved in the first place,” says Anderson.

Just a few days after the purchase offer, in mid-AprilMusk also assured that if the deal went through, he would “beat the spam” or fight them “to the end.”

For Nathan Anderson, Twitter has “more leverage” than its opponent in the process, “knowing the potential threat to Musk’s empire in the event of an outright victory for the social network.”

“The market sees this action in court as ‘very strong,'” said Dan Ives, an analyst at Wedbush Securities.

“The action now includes the significant possibility that Musk could ultimately agree to pay more than $1 billion.” An amount that corresponds to the compensation provided for in the original agreement between the businessman and Twitter “and even the possibility that he (Musk) should buy the company at the expected price”, explained the analyst.

complaint

Twitter sued Elon Musk on Tuesday for breaching a $44 billion deal to buy a social media platform and A Delaware state court was asked to order the world’s richest man to complete the merger at the agreed upon $54.20 per Twitter share.According to the court.

“After making a public show to use Twitter, and proposing and then signing a vendor merger agreement, Musk seems to believe that he — unlike the rest of Delaware’s contract law — is free to change his mind, destroy the company, cease operations, destroy shareholder value, and walk away.”– it is said in the lawsuit.

Brett Taylor, the chairman of Twitter’s board of directors, tweeted Tuesday that the lawsuit has been filed in Delaware’s Chancery Court. that Elon Musk fulfills his contractual obligations.”

The suit calls for the court to order the billionaire to terminate the Twitter purchase agreement, arguing that no amount of financial compensation can make up for the losses he has suffered. “Musk’s conduct simply demonstrates that he wants to escape the binding contract he freely signed and harm Twitter in the process,” the lawsuit warns. “Twitter has suffered and will continue to suffer irreparable harm as a result of the defendants’ violations.”

Delaware’s trial court often resolves business disputes between multiple corporations, including Twitter, that are incorporated there.

(According to AFP and Reuters)

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