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.
"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.