While news of an amended acquisition deal between SunEdison’s yield co TerraForm Power and Vivint Solar appeared to give SunEdison a hefty boost in the stock market, hedge fund Appaloosa Management is now raising a number of questions about the new agreement.
Appaloosa, which owns a 9.5% stake in TerraForm, filed a request to review the yield co’s books and records, focusing on all transaction documents, minutes of meetings and letters of intent revolving around the Vivint Solar acquisition.
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Stock in SunEdison tailed off significantly on Tuesday, dropping from US$6.36 at 9:35AM (EST) to US$4.65 at 10:55AM.
SunEdison’s reshuffled deal with Vivint appeared to benefit a number of parties, as TerraForm saved over US$120 million while SunEdison boosted its stock option by US$0.75/share, but it appears that Appaloosa is set to perform its due diligence on the transaction.
