After the bell, shares had surged 51.6% to $4.76.
Greenlight Capital, founded by hedge fund manager David Einhorn, proposed a potential acquisition of the biofuel developer for $275 million, payable in cash and common stock.
"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," Einhorn and JBGL Funds founder Jim Brickman in a letter to BioFuel's board.In a separate SEC filing, Greenlight disclosed it had increased its stake in BioFuel to 29%, or around 1,78 million shares, from a previous 26.2% stake. Must read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.