David Einhorn Goes Activist On Sunedison, Is Officially Seeking A Board Seat

Sunedison Inc SUNE shares are up 2 percent on Monday after-hours, after a 2.6 percent rise during the day's regular session. Hedge fund manager David Einhorn of Greenlight Capital revealed, in a new 13D filing, a 6.8 percent stake in the renewable energy company.

Einhorn now holds 27.1 million shares in Sunedison, up from the 18.6 million held as of his latest fourth quarter 13F filing.

Of note, Einhorn's filing indicates his position in Sunedison is now activist in nature. According to the filing, Greenlight engaged in discussions with Sunedison management between January 15 and 25 concerning management performance, Board composition and future issuances of equity.

The fund said it proposed that Sunedison "appoint a person designated by Greenlight to the Board (as well as to the Board’s Nominating and Corporate Governance and Finance and Investment Committees) as an independent director." Any future equity issuances would need supermajority approval from the Board for two years, Greenlight's proposal added.

Greenlight said it has not yet reached an agreement with Sunedison regarding these requests.

Earlier on Monday, the Wall Street Journal reported Greenlight would be given a seat on the company's board of directors.

Sunedison shares are near $2.72 in Monday's after-hours session, still down significantly after Axiom's Gordon Johnson told Benzinga on January 12 he was "more cautious" on the company's ability to survive 2016.