NEW YORK (TheStreet) -- Shares of TerraForm Power(TERP) - Get Report are increasing 5.44% to $13.18 in early morning trading on Monday as the Bethesda, MD-based power generation company adopted a poison pill defense to prevent the sale of significant Class A shares.
Toronto-based Brookfield Asset Management (BAM) and hedge fund Appaloosa currently own 12.13% and 9.54% of TerraForm Power's Class A shares, respectively, Reuters reports. Brookfield Asset Management and Appaloosa plan to purchase SunEdison's Class B shares.
TerraForm is one of SunEdison's (SUNEQ) yieldcos.
The shareholders rights plan, known as poison pill, was adopted to help thwart Brookfield Asset Management's accumulation of TerraForm's Class A shares, the company said in a statement.
TerraForm had 80 million Class A shares and 60.4 million Class B shares outstanding last October, Reuters reports.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate TERRAFORM POWER INC as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally high debt management risk.
You can view the full analysis from the report here: TERP