David Einhorn, Greenlight Capital Raise Stake in BioFuel Energy Corp. (BIOF); Send Business Proposal To Board

David Einhorn is bullish on BioFuel Energy Corp. (NASDAQ:BIOF) and is planning on going activist. In a recent filing with the Securities and Exchange Commission, Einhorn and his fund, Greenlight Capital, have announced an increase in their stake from 1.42 million to 2.21 million shares. As a result, Einhorn and Greenlight currently hold approximately 35.5% of the company’s common stock. Einhorn has also sent a letter to the Board of BioFuel Energy, making a business proposal that would see him joining the Board of Directors.

BioFuel Energy Corp. (NASDAQ:BIOF)

The business proposal comes from David Einhorn and James Brickman, a real estate investor, who, together with Einhorn, controls a company BioFuel Energy is to invest in. According to the proposal, BioFuel is to fork out $275 million in cash and stock for the investment, Brickman is to become the Chief Executive Officer of BioFuel, while Einhorn would join the Board of Directors. Should the proposal be accepted, David Einhorn and Greenlight Capital would increase their stake to 49.9% of the total amount of shares outstanding.

The complete text of the proposal can be found below:

Einhorn Letter BioFuel

Only one other hedge fund that we track has invested in BioFuel Energy Corp.(NASDAQ:BIOF) - Dan Loeb‘s Third Point, which holds 1.04 million shares with a reported value of $1.78 million.

A producer and seller of ethanol and its co-products, BioFuel Energy Corp.(NASDAQ:BIOF) has a market cap of $36.8 million and does not pay a dividend. So far this year, the stock has advanced 256% to a current share price of above $6.00. The company has reported a net loss of $39.2 million for 2013, which translates into a loss per diluted share of $7.34.

During the previous quarter, Einhorn has made a significant new investment through the acquisition of 47.7 million shares of Micron Technology, Inc. (NASDAQ:MU), a position which is valued at $1.03 billion. Greenlight Capital has maintained two of its biggest positions, Apple Inc. (NASDAQ:AAPL) and General Motors Company (NYSE:GM) untouched. Einhorn and his fund hold approximately 2.4 million shares of the tech giant, valued at $1.34 billion and 17 million shares of General Motors, reportedly worth $696 million.

Disclosure: none.

Recommended reading:

Stocks That Both David Einhorn and Insiders Love

Hedge Fund News: Thomas Steyer, David Einhorn & Carl Icahn

David Einhorn and Insiders Are Bullish About These Stocks

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!