Tepper's Appaloosa Asks to See Terraform Power's Books

David Tepper's hedge fund Appaloosa Management LP has asked to see the books of Terraform Power Inc., the latest salvo between the hedge fund and affiliate company of SunEdison Inc.

Earlier this month, Appaloosa unveiled a stake of more than 9% in Terraform Power, which was spun off from SunEdison as a so-called "yieldco." That was part of SunEdison's push to monetize some of its renewable-energy assets in emerging markets by taking them public.

Appaloosa has recently raised questions about the relationship between the two companies, citing a planned deal. SunEdison in July agreed to buy residential solar-system company Vivint Solar for about $1.9 billion in cash, stock and notes. As part of that deal for Vivint, a TerraForm Power subsidiary would buy Vivint's rooftop solar portfolio from SunEdison.

In a letter sent to Terraform earlier this month, Appaloosa said the transaction "poses a serious threat to the company's prospects and should be vigorously resisted."

In a regulatory filing, Appaloosa said it sent a letter Monday asking to inspect TerraForm's books to investigate breaches of Delaware law and of directors' fiduciary duties.

Shares of TerraForm Power recently declined 3.7%, while shares of related TerraForm Global Inc. fell 7.7%. Shares of SunEdison, which have swung wildly lately, dropped 28%--but are still up 72% in the past month including Tuesday's decline.

Meanwhile, Vivint late Monday night said a coming decision from the Nevada Public Utilities Commission would keep it from re-entering the Nevada market.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

(END) Dow Jones Newswires

December 22, 2015 12:25 ET (17:25 GMT)

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