NEW YORK (TheStreet) -- Shares of SunEdison (SUNE) are surging by 7.35% to $2.92 in early afternoon trading on Tuesday, as a report yesterday suggested David Einhorn's Greenlight Capital is in talks with the company about a board seat and that the hedge fund is considering selling the solar company or its assets.
The hedge fund said it has not reached a deal about getting a board seat at the solar company, according to a U.S. Securities and Exchange Commission filing on Monday, Reuters reported.
"To date, no understanding has been reached between Greenlight and the company with respect to these issues," the filing said.
Billionaire investor Einhorn and representatives from the hedge fund met with SunEdison between January 15 and 25 to discuss the performance of the solar company's senior leadership team, the composition of its board and future issuance of its equity and equity-linked securities.
It was reported on Sunday that the Marlyand Heights, MO-based solar company would give the hedge fund a seat on its board.
Greenlight which owned about 8% of the company as of January 11, will likely appoint a director from outside of the New York-based hedge fund.
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 it covers.
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: SUNESUNE data by YCharts