Vivint Solar terminates $2.2 billion merger with SunEdison

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The Vivint Doorbell Camera is displayed at CES 2016, January 7, 2016 in Las Vegas.

Rooftop solar panel installer Vivint Solar said on Tuesday it had terminated an agreement under which it would have been taken over by solar energy company SunEdison after SunEdison failed to “consummate” the deal.The cash-and-stock deal, worth $2.2. billion when it was forged last July, had faced criticism from hedge funds and other investors as SunEdison’s finances and share price weakened.SunEdison shares were up 41 percent at $2.68 in premarket trading, while Vivint’s were little changed at $5.20.Vivint said it intended to “seek all legal remedies available” as a result of the “willful breach” of the merger agreement by SunEdison.”We believe both companies will be better off on their own,” Cowen and Co. analysts wrote in a note to clients, noting that U.S. lawmakers had extended solar investment tax credits beyond 2016, breathing new life into the industry.The Vivint deal was set to expire on March 18, the analysts said, adding that SunEdison could be liable for an amount “well above” the breakup fee of $34 million following a court hearing or likely settlement.Rooftop solar panel installer Vivint Solar  said on Tuesday it had terminated an agreement under which it would have been taken over by solar energy company SunEdision  after SunEdison failed to “consummate” the deal.The cash-and-stock deal, worth $2.2. billion when it was forged last July, had faced criticism from hedge funds and other investors as SunEdison’s finances and share price weakened.SunEdison shares were up 41 percent at $2.68 in premarket trading, while Vivint’s were little changed at $5.20.The Vivint Doorbell Camera is displayed at CES 2016, January 7, 2016 in Las Vegas.Vivint said it intended to “seek all legal remedies available” as a result of the “willful breach” of the merger agreement by SunEdison.”We believe both companies will be better off on their own,” Cowen and Co. analysts wrote in a note to clients, noting that U.S. lawmakers had extended solar investment tax credits beyond 2016, breathing new life into the industry.The Vivint deal was set to expire on March 18, the analysts said, adding that SunEdison could be liable for an amount “well above” the breakup fee of $34 million following a court hearing or likely settlement.SunEdison was not immediately available for comment.Like other solar companies, SunEdison has been hit by the drop in oil prices but it has also faced criticism for trying to grow too quickly through acquisitions that it could not afford.

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