[Editor's note: This story was updated at 11:22 CST June 15.]
SandRidge Energy Inc. (NYSE: SD) said June 15 it had been approached by 17 potential bidders for a buyout, including billionaire Carl Icahn who is fighting for control of the oil and gas producer's board.
Icahn has criticized SandRidge's leadership, got the company to back out of its planned buyout of rival Bonanza Creek Energy Inc. (NYSE: BCEI) and forced the removal of the company's CEO and CFO.
The investor, who said in April he was willing to buy the company, will now have to battle 16 other potential suitors even as he seeks to revamp the board with his seven preferred nominees.
"Some investors tip their hat to an Icahn-lead board, as that might offer a quicker and possibly greater gain," said David Beard, an analyst at Coker Palmer Institutional.
"But it also seems that both management and Icahn want a higher stock price. Either way, shareholders should win."
The analyst reckoned most of the potential bidders could be from Oklahoma's Scoop/Stack region, a fast-growing shale oil play that is attracting investment as companies look beyond the Permian Basin in Texas.
Devon Energy Corp. (NYSE: DVN), Marathon Oil Corp. (NYSE: MRO) and smaller producers such as Colorado's Cimarex Energy Co. (NYSE: XEC) are some of the major players in the Scoop/Stack region.
SandRidge, which has a market value of $544 million, sees most of its production coming from the northwest Stack region. Its stock has risen about 18% since Icahn disclosed his buyout interest in April.
Earlier this month, the oil and gas producer said proxy advisory firm Institutional Shareholder Services Inc. recommended SandRidge shareholders should vote for the company's board nominees.
The annual shareholders meeting is slated for June 19.
SandRidge also said Midstates Petroleum Co. Inc. (NYSE: MPO), whose all-stock bid was rejected by the company in March, did not agree to its confidentiality terms, even after month-long negotiations with the smaller rival.
RELATED: Midstates Petroleum Makes Public Pitch To Merge With SandRidge
Midstates, however, rejected SandRidge's claims in a statement on June 15.
"While SandRidge has offered a non-disclosure agreement (NDA) to Midstates, it would require Midstates to enter into a standstill, which is an unusual requirement for a party that has made a public offer," Midstates said.
SandRidge has informed Midstates that it will not provide internal forecasts to the company even if it were to sign the NDA offered by SandRidge, Midstates added.
SandRidge's shares were up more than 1% at $15.53, while Midstates' shares fell 3.5% to $11.83.
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