Market Overview

SunEdison Spikes 35% After Vivint Solar Terminated Its Merger Agreement

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SunEdison Spikes 35% After Vivint Solar Terminated Its Merger Agreement

Vivint Solar Inc (NYSE: VSLR) has terminated its merger agreement with Sunedison Inc (NYSE: SUNE), according to an early morning press release.

In a letter penned by Vivint and delivered to SunEdison on Monday evening, the former alleges that the latter failed "to meet its obligations under the merger agreement."

Of particular offense, Vivint's letter cites SunEdison's "failure to consummate the merger when required pursuant to the terms of the merger agreement," which then constituted "a willful breach of the merger agreement."

The letter concluded with Vivint stating it "intends to seek all legal remedies available to it in respect of such willful breach," the company explained in the press release.

Related Link: EP Energy, Bonanza Creek Selling Off After Credit Suisse Thesis

Stocks On The Move

SunEdison has experienced a significant jump since market close Monday, at one point up 35 percent.

At time of writing, the stock was up 23 percent at $2.32.

Vivint, on the other hand, was down more than 10 percent shortly after Tuesday's opening bell.

Other solar stocks are likewise moving, potentially off the sector news, including:

  • TerraForm Power Inc (NASDAQ: TERP), up 11.55 percent
  • SolarCity Corp (NASDAQ: SCTY), up 4.38 percent
 

Related Articles (SUNE + VSLR)

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