CORRECTED-UPDATE 1-SunEdison gives Einhorn's Greenlight Capital a board seat

Wed Jan 27, 2016 11:08am EST
 
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(Corrects third paragraph to say Greenlight Capital's stake in SunEdison is 6.8 pct, not 4 pct; drops incorrect reference to Einhorn holding 4 pct stake)

Jan 27 (Reuters) - SunEdison Inc added a former partner from David Einhorn's Greenlight Capital to its board, bowing to pressure from the hedge fund, which has sought a sale of the solar company or some of its assets.

Shares of the company, which is also under attack from David Tepper's Appaloosa Management LP, rose about 1 percent to $3.09 in premarket trading on Wednesday.

Greenlight had a 6.8 pct stake in SunEdison as of Jan. 15, according to a regulatory filing on Jan. 25. (1.usa.gov/1ZZKLsg)

Einhorn lost 20.6 percent in 2015 as a bet on SunEdison cratered in November.

Claire Gogel will join SunEdison's board as an independent director, effective immediately, the company said on Wednesday.

Under a deal with Greenlight, SunEdison also agreed to amend its bylaws such that it will not be allowed to issue equity for a period of two years without the approval of nearly all of its board members.

Appaloosa filed a lawsuit earlier this month to prevent SunEdison's yieldco, TerraForm Power Inc, from buying some of Vivint Solar Inc's assets after SunEdison acquires the rooftop panel installer.

Up to Tuesday's close, SunEdison's shares had fallen 90 percent since the Vivint deal was announced in July last year. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Sriraj Kalluvila)