NEW YORK (TheStreet) -- BioFuel Energy (BIOF)  is soaring in extended trading Friday after it received a preliminary non-binding proposal to be acquired by Greenlight Capital.

After the bell, shares had surged 51.6% to $4.76.

Greenlight Capital, founded by hedge fund manager David Einhorn, proposed a potential acquisition of the biofuel developer for $275 million, payable in cash and common 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 Jim Brickman in a letter to BioFuel's board.

In a separate SEC filing, Greenlight disclosed it had increased its stake in BioFuel to 29%, or around 1,78 million shares, from a previous 26.2% stake.

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