Shortly after market open, shares had exploded 89.5% to $5.95. 595
On Friday, the Denver, Colo.-based business received a proposal from Greenlight Capital, founded by hedge fund manager David Einhorn, and James R. Brickman which suggested BioFuel acquire equity in real-estate developer JBGL Capital and JBGL Builder Finance. JBGL is currently owned and controlled by Greenlight and Brickman.
In a letter to BioFuel's board, Einhorn and Brickman proposed the purchase for $275 million, payable in cash and stock.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "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 Brickman wrote in the letter. In response, BioFuel's board will establish a special committee of independent directors to evaluate the proposal. Additionally, Greenlight Capital disclosed in an SEC filing that it had increased its stake in the ethanol producer to 35.5% from 26.2% as of the end of 2013. 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.