Einhorn's Greenlight May Seek SunEdison Sale, Filing Showsby and
Greenlight says it may propose changes including asset sale
Hedge fund manager controls 6.8% company stake, filing shows
David Einhorn’s Greenlight Capital LLC may propose a sale of SunEdison Inc. after reporting on Monday a stake of almost 7 percent in the clean-energy company whose stock slid 74 percent last year.
Greenlight, which has been in talks with SunEdison this month about gaining a board seat, may recommend that SunEdison sell itself, sell assets or change senior management, a filing Monday with the U.S. Securities and Exchange Commission shows. The hedge fund manager now controls 27.2 million shares, including convertible notes and warrants, a stake of about 6.8 percent based on the filing.
SunEdison’s shares slid in the second half of 2015 as investors began voicing concern about the company’s increasing debt load. It spent billions last year to expand internationally, becoming the world’s biggest clean-energy developer. Einhorn has proposed that the company appoint an independent director designated by the hedge fund.
Shares of SunEdison, the worst performer of the 104-member WilderHill New Energy Global Innovation index, have tumbled 86 percent in the past year. They gained 2.6 percent on Monday to close at $2.72 in New York trading.