March 31, 2014 / 3:16 PM / 6 years ago

Biofuel Energy shares double as Einhorn plans to take control

March 31 (Reuters) - Shares in Biofuel Energy Corp more than doubled after hedge fund manager David Einhorn and his affiliates unveiled a plan to take a controlling stake in the ethanol producer.

Einhorn already holds more than 35 percent of Biofuel Energy, mostly through his investment fund, Greenlight Capital Inc, according to a regulatory filing on Friday.

The preliminary proposal involves Biofuel buying real-estate assets controlled by Greenlight and real estate investor James Brickman for $275 million in cash and Biofuel stock.

Brickman will become Biofuel Energy's chief executive after the deal and sit on the company's board along with David Einhorn, the filings showed. (

Brickman, together with certain trusts and family members, will own 8.4 percent of Biofuel Energy after the deal, while Greenlight will own 49.9 percent.

Biofuel said it would establish a special committee of independent directors to evaluate the proposal and other options for the company.

Greenlight was not immediately available for comment.

Biofuel shares, which closed at $3.14 on Friday, more than doubled to $6.64 in morning trade on Monday, valuing the company at $40.56 million. (Reporting by Swetha Gopinath and Sayantani Ghosh in Bangalore; Editing by Rodney Joyce)

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