UPDATE 3-Appaloosa sues to block SunEdison unit from buying Vivint assets

Wed Jan 13, 2016 11:52am EST
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* TerraForm Power is to buy Vivint assets for $799 mln

* Appaloosa held 9.5 pct TerraForm Power shares as of Dec

* SunEdison shares fall as much as 17 pct (Adds SunEdison's response)

By Amrutha Gayathri and Sneha Banerjee

Jan 13 (Reuters) - David Tepper-led hedge fund Appaloosa Management LP sued to prevent SunEdison Inc's yieldco from buying some of Vivint Solar Inc's assets after SunEdison acquires the rooftop panel installer.

The yieldco, TerraForm Power Inc, is to acquire Vivint's residential solar rooftop portfolio for $799 million after SunEdison completes the Vivint transaction.

Appaloosa is seeking "immediate injunctive relief", given that SunEdison's acquisition of Vivint could close "at any time," the hedge fund said in a filing in a Delaware court on Tuesday.

SunEdison declined to comment on the lawsuit.

SunEdison shares fell as much as 17 percent in morning trading on Wednesday, while Vivint shares declined as much as 5 percent. TerraForm Power shares rose as much as 4.5 percent, but gave up gains and turned slightly negative.   Continued...