This article was originally published by GuruFocus on March 29, 2014
By Sarfaraz A. Khan
David Einhorn (Trades, Portfolio)’s Greenlight Capital (GLRE) has recently released a preliminary proposal in which the business could acquire a small ethanol company called BioFuel Energy (BIOF). As a result, BioFuel’s shares have soared in after hours trading, showing anincrease of more than 50%. Before this, David Einhorn (Trades, Portfolio) added Micron Technology (MU) to his portfolio. The DRAM maker will likely release its quarterly results on Thursday in which the company could post significant improvements in its revenues and income.
By Sarfaraz A. Khan
David Einhorn (Trades, Portfolio)’s Greenlight Capital (GLRE) has recently released a preliminary proposal in which the business could acquire a small ethanol company called BioFuel Energy (BIOF). As a result, BioFuel’s shares have soared in after hours trading, showing anincrease of more than 50%. Before this, David Einhorn (Trades, Portfolio) added Micron Technology (MU) to his portfolio. The DRAM maker will likely release its quarterly results on Thursday in which the company could post significant improvements in its revenues and income.
Greenlight Capital has proposed to purchase the biofuel developer through a $275 million transaction, which involves cash and equity. In a letter addressed to BioFuel’s board, David Einhorn (Trades, Portfolio) and Jim Brickman of JBGL Funds said, “We believe that this proposal provides an opportunity for the Company and its stockholders to acquire an interest in a business with long term equity potential and an attractive portfolio of assets”
Greenlight Capital has also revealed that it has increased its stake in ... read full article at GuruFocus
