Investor Matt Halbower set to win windfall from Elon Musk’s Twitter deal

A Florida hedge fund investor is set to score a fortune on a shrewd bet on Elon Musk’s takeover battle with Twitter – even as he reclaims the rooms in his home that were devastated by the Hurricane Ian, sources told The Post.

Matt Halbower, managing director of $1.3 billion merger fund Pentwater Capital Management, made a bold move after Musk threatened to break his deal to buy Twitter for $44 billion a share. Pentwater paid $725 million to acquire 18 million shares of Twitter in the second quarter, at a cost of about $40 per share, according to public filings.

If Musk and Twitter complete settlement talks and close the deal at $54.20 per share, Pentwater should make about $250 million — a 35% profit — on its Twitter shares in less than six months. However, Pentwater also bought put options on Twitter which helped hedge its position and possibly halve the gains, a source with knowledge of the company’s exposure said.

Meanwhile, however, Halbower in 2019 moved Pentwater’s headquarters from suburban Chicago in Evanston, Ill., to Naples, where he owned a $14 million mansion, sources said. Hurricane Ian nearly destroyed the lavish Halbower estate, a source familiar with the matter said. Halbower, whose family is safe, is now in Naples trying to repair the damage, according to the source.

Pentwater Capital Management founder and CEO Matt Halbower made a bold bet on Twitter.
Hurricane Ian
Hurricane Ian tore through Florida last week.

Halbower, who declined to comment, isn’t the only investor who’s poised for a windfall as Musk nears his deal to buy Twitter. Corporate raider Carl Icahn is set to make a profit of up to $250 million after investing more than $500 million in Twitter stock during Musk’s talks, according to the Wall Street Journal.

Hedge funds DE Shaw and Daniel Loeb’s Third Point are also positioned for big gains, the newspaper reported, citing unnamed sources.

Halbower said in a July 20 interview with CNBC that he believed Twitter would be able to coerce Musk into closing his merger deal at nearly $54.20 per agreed share based on his skepticism of Musk’s argument that Twitter had misrepresented the number of automated bots operating fake accounts on its location.

Elon Musk said on Tuesday that he wanted to move forward with his Twitter deal.
AFP via Getty Images

“I’ve been doing this for almost 25 years and in my career I’ve never seen someone sign a merger deal and then literally two weeks later try to fabricate a problem that they were well aware of before signing the deal. merger agreement in order to evade their obligations,” said Halblower.

Halblower’s Twitter bonanza was reported earlier by CNBC.