NEW YORK (TheStreet) -- Shares of SunEdison (SUNE) are rising by 12.79% to $3.44 on Wednesday morning, as the company gave a board seat to a former partner from David Einhorn's hedge fund Greenlight Capital.
Claire Gogel will join the solar company's board as an independent director effective immediately, according to a company statement.
Under the same agreement, SunEdison will amend its bylaws to provide that the company will not be allowed, for two years, to make equity issuances without a supermajority vote of the board, following the close of its pending acquisition of Vivint Solar (VSLR).
"As we work to navigate current market conditions, we are very pleased that we will have the benefit of tapping the expertise of a highly-qualified director endorsed by a significant shareholder," Executive Chairman of the Board Emmanuel T. Hernandez said in a statement.
"We also believe that the new bylaw amendment makes clear our unequivocal commitment to SunEdison and its common shareholders."
Einhorn had a 6.8% stake in SunEdison and Greenlight had a 4% stake as of January 15, according to a regulatory filing cited by Reuters.
The billionaire investor's hedge fund has considered a sale of SunEdison or some of its assets.
Separately, TheStreet Ratings Team has a "sell" rating with a score of D on the stock.
This is driven by some concerns, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered by the team.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SUNE