Icahn had Twitter stake worth over $500 million before Musk’s about-face

(Reuters) -Activist trader Carl Icahn amassed a Twitter stake worth more than $500 million in the past couple of months and designed a sizable profit on Tuesday after Elon Musk proposed to go ahead with his takeover of the social media platform, the Wall Avenue Journal noted.

Twitter shares jumped much more than 22% to conclusion at $52.00 on Tuesday immediately after a securities submitting confirmed Musk intends to go ahead with his April give of $44 billion to get the firm non-public, signaling an stop to a legal battle that could have forced Musk to pay out up.

Icahn compensated in the mid-$30s a share for the stake, the report mentioned, citing persons acquainted with the matter. The believed gain for Icahn Enterprises LP could exceed $250 million, it included.

Icahn produced the investment on the perception that Tesla (NASDAQ:) Inc main Musk would not go by a trial that he looked possible to get rid of, the report reported. He also believed that the inventory was well worth close to the mid-$30s in the prolonged term.

Other investors, such as D.E. Shaw Group and Daniel Loeb’s Third Stage LLC, also positioned bets on Twitter shares in recent months and could make sizable gains as effectively, in accordance to the report.

3rd Stage and Twitter declined to remark. Icahn Enterprises and D.E. Shaw Team did not respond to Reuters’ requests for remark.