David Einhorn, founder of hedge fund Greenlight Capital, has written to investors to inform them that the fund has acquired a new stake in Twitter at an average price of $37.24 per share, according to a report by Reuters.

David Einhorn, founder of Greenlight Capital, has written to investors to inform them that the fund has acquired a new stake in Twitter at an average price of $37.24 per share, according to a report by Reuters.

The moves comes after Twitter launched legal action against Tesla boss Elon Musk in July to force him to complete his proposed $44 billion proposed acquisition of the social media company. 

In the letter to investors, Einhorn explained that the price paid for the stock gives the firm $17 per share of 'upside' if Twitter prevails and Musk completes the deal, and $17 of 'downside' if it doesn't. 

A five-day trial is scheduled for October to decide whether Musk must "honour his obligations" to Twitter and proceed, with Einhorn reportedly saying that 95% of the time he would expect such a deal to complete.