Icahn Steps Up Fight Against SandRidge's Plan to Buy Bonanza Creek
Activist investor Carl Icahn on Friday stepped up its fight against SandRidge Energy Inc (SDRXP.PK)'s plan to buy a rival, urging fellow stockholders to vote against the oil and gas company's plan to issue shares for the $746 million deal.
Icahn, SandRidge's biggest shareholder with a 13.5 percent stake, has called the offer – worth $19.20 per share in cash and $16.80 in stock – for Bonanza Creek Energy "value-destroying."
Several other holders including Fir Tree Partners and Susquehanna Advisors Group have come out against the purchase and said SandRidge was paying an unjustified premium.
Billionaire Icahn, known for shaking up management at companies, had asked SandRidge earlier this month to provide some records including executive pay and details on the deal.
Oaklahoma-based SandRidge, which has called Icahn's claims "false and reckless," agreed to make some records available to Icahn subject to a confidentiality agreement.
The company has argued that the deal would add to its cash flow and provide it development-ready projects in the Niobrara region.
SandRidge's shares were up 0.5 in early trading on Friday, while Bonanza Creek shares dropped nearly 2 percent.
Reporting by Taenaz Shakir in Bengaluru
