Tepper's Appaloosa Asks to See Terraform Power's Books
December 22 2015 - 12:40PM
Dow Jones News
David Tepper's hedge fund Appaloosa Management LP has asked to
see the books of Terraform Power Inc., the latest salvo between the
hedge fund and affiliate company of SunEdison Inc.
Earlier this month, Appaloosa unveiled a stake of more than 9%
in Terraform Power, which was spun off from SunEdison as a
so-called "yieldco." That was part of SunEdison's push to monetize
some of its renewable-energy assets in emerging markets by taking
them public.
Appaloosa has recently raised questions about the relationship
between the two companies, citing a planned deal. SunEdison in July
agreed to buy residential solar-system company Vivint Solar for
about $1.9 billion in cash, stock and notes. As part of that deal
for Vivint, a TerraForm Power subsidiary would buy Vivint's rooftop
solar portfolio from SunEdison.
In a letter sent to Terraform earlier this month, Appaloosa said
the transaction "poses a serious threat to the company's prospects
and should be vigorously resisted."
In a regulatory filing, Appaloosa said it sent a letter Monday
asking to inspect TerraForm's books to investigate breaches of
Delaware law and of directors' fiduciary duties.
Shares of TerraForm Power recently declined 3.7%, while shares
of related TerraForm Global Inc. fell 7.7%. Shares of SunEdison,
which have swung wildly lately, dropped 28%--but are still up 72%
in the past month including Tuesday's decline.
Meanwhile, Vivint late Monday night said a coming decision from
the Nevada Public Utilities Commission would keep it from
re-entering the Nevada market.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
December 22, 2015 12:25 ET (17:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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