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David Einhorn's Greenlight Capital Inc. is reportedly on the verge of winning a board seat at SunEdison Inc., a struggling renewable energy company that was one of the hedge fund's worst-performing investments in 2015.
A place on the board would give Greenlight Capital a chance to influence strategy at a company that has been hit by a months-long selloff that erased billions of dollars in market value and highlighted investor concern about SunEdison's finances and business plan. Under an agreement that could be announced in the coming days, GreenLight Capital likely would appoint a director from outside the firm, The Wall Street Journal reported Jan. 24, citing people familiar with the matter.
Einhorn in the past has defended SunEdison, saying the selloff that started in July, after SunEdison said it would buy rooftop solar company Vivint Solar Inc., was "overdone."
"SunEdison management has adjusted its strategy in response to the falling stock price," Einhorn said on a conference call in October 2015 to discuss Greenlight Capital Re Ltd.'s third-quarter earnings. "The company has raised additional equity, identified a third party to buy its projects and slowed its development pipeline. We think the situation has stabilized and we see the potential for a significant recovery in the stock price from current levels," he said.
SunEdison's stock price has dropped about 68%...