[Editor's note: This story was updated at 2:40 p.m. CST Nov. 30.]
SandRidge Energy Inc.'s (NYSE: SD) top shareholder and activist investor Carl Icahn blasted the oil and gas company's move to adopt a poison pill plan amid strong opposition to its $746 million bid for Bonanza Creek Energy Inc. (NYSE: BCEI).
In a letter to SandRidge's board, Icahn called the proposed deal "value-destroying" and said the shareholder rights plan adopted earlier this week was designed to prevent large shareholders from campaigning against the deal.
"On Nov. 26, 2017, in direct response to this strong shareholder opposition to the proposed acquisition, you adopted a poison pill that is a complete travesty and represents a new low in corporate governance." Icahn said in the letter on Nov. 30.
RELATED: Activist Investors’ ‘Noise’ Puts SandRidge-Bonanza Merger On Life Support
Icahn's letter comes a week after he disclosed a 13.5% stake in SandRidge and joined other major shareholder Fir Tree Partners in opposing a move that they said would drain all of the company's cash.
SandRidge responded, saying in a statement that its board fully supports the acquisition and expects before year-end to file proxy materials "which will give shareholders the ability to fully review the merits of the transaction."
While Icahn said he is not currently taking any action against the company, he is considering seeking proxies from shareholders to vote against the Bonanza deal and is also prepared to initiate litigation.
SandRidge's shares were up 3.2% at $18.70. Bonanza Creek shares were marginally up.
Recommended Reading
Matador Touts Cotton Valley ‘Gas Bank’ Reserves as Prices Increase
2025-02-21 - Matador Resources focuses most of its efforts on the Permian’s Delaware Basin today. But the company still has vast untapped natural gas resources in Louisiana’s prolific Cotton Valley play, where it could look to drill as commodity prices increase.
Diamondback’s Stice to Step Down as CEO, Van’t Hof to Succeed
2025-02-20 - Diamondback CEO Travis Stice, who led the company through an IPO in 2012 and a $26 billion acquisition last year, will step down as CEO later this year.
Cheniere’s Corpus Christi 3 Project Sends First Commissioned LNG Cargo
2025-02-20 - Cheniere Energy executives say the Corpus Christi Stage 3 project has been ahead of schedule in commissioning its first LNG cargo.
SM Energy Restructures Leadership Team
2025-02-20 - SM Energy Co. has made several officer appointments and announced the retirement of Jennifer Martin Samuels, the company’s vice president of investor relations and ESG stewardship.
EIA Reports Larger-Than-Expected NatGas Withdrawal, Again
2025-02-20 - The storage drop failed to offset warmer forecasts, as natural gas prices dipped following a three-week rally.