| SandRidge investor Fir Tree opposes $746 million bid for Bonanza Creek | |
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(Reuters) - Activist investor Fir Tree Partners on Monday opposed SandRidge Energy Inc's $746-million deal to buy rival Bonanza Creek Energy Inc , saying an acquisition would drain all of the oil and gas producer's cash. "We believe this proposed acquisition represents a complete about face by (SandRidge's) management on its post-bankruptcy strategy," Fir Tree Partners, which owns about 8.3 percent of SandRidge, said in a statement. SandRidge emerged from bankruptcy late last year, while Bonanza did so in April following a recovery in oil prices after a two-year slump. As of Sept. 30, Oklahoma-based SandRidge's cash and cash equivalents stood at $133.2 million. Shares of SandRidge, which had fallen nearly 22 percent since the beginning of the year, dropped another 15 percent on Wednesday after the deal was announced. Bonanza Creek's shares closed at $32.07 on Wednesday, well below SandRidge's offer price of $36 per share, suggesting investors were skeptical the deal would close. Fir Tree also said SandRidge was paying an "unjustified premium" for Bonanza Creek.
(Reporting by John Benny in Bengaluru; Editing by Arun Koyyur and Sai Sachin Ravikumar) |
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SandRidge Energy
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CODE : SD |
ISIN : US80007P3073 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
SandRidge is a exploration company based in United states of america. SandRidge is listed in United States of America. Its market capitalisation is US$ 524.1 millions as of today (€ 489.7 millions). Its stock quote reached its lowest recent point on January 06, 2016 at US$ 0.15, and its highest recent level on April 25, 2024 at US$ 14.62. SandRidge has 35 850 000 shares outstanding. |