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. (link.reuters.com/xux97v)
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)