TORONTO — The hedge fund that wants MI Developments Inc. to divest its 59-per-cent share of Magna Entertainment Corp. was itself a major shareholder of the racetrack and gambling company before becoming disillusioned and selling off its stake in 2002, an Ontario Superior Court hearing was told yesterday.
Nine months after ending an investment in MEC that had been worth about $15-million at its peak, New York hedge fund Greenlight Capital Inc. bought about $100-million worth of shares in MI, even though it knew the real estate company’s biggest asset was its holding in MEC, said Kent Thomson, a lawyer for MI.
