NEW YORK (TheStreet) -- Shares of TerraForm Power (TERP) were rising in mid-morning trading on Monday as the investment firm D.E. Shaw is considering a bid for SunEdison's (SUNEQ) controlling stake in the Bethesda, MD-based power plant operator.
TerraForm is the bankrupt renewable energy company's most valuable asset, Reuters reports. SunEdison currently owns 35% of outstanding shares, which equates to approximately 84% of the voting rights in TerraForm.
D.E. Shaw already owns a 6.7% stake in TerraForm, receiving the shares in exchange for forgiving debt owed by SunEdison.
The sale of TerraForm's "Class B" shares has become competitive, as several companies last week voiced interest purchasing the shares, according to Reuters.
The hedge fund Appaloosa Management and Brookefield Asset Management (BAM) last week announced plans to jointly bid on the shares. The companies already own a combined 21.5% stake in TerraForm.
Chinese clean energy company Golden Concord is also weighing a bid.
SunEdison filed for Chapter 11 bankruptcy in April and has since then been shedding assets, including its shares in TerraForm Global (GLBL).
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:
The team rates TERRAFORM POWER INC as a Sell with a ratings score of D. This is driven by several weaknesses, which it 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 the team covers. 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