| SandRidge yields to Icahn pressure, ends Bonanza Creek deal | |
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(Adds details on Icahn, Fir Tree, share movement) Dec 28 (Reuters) - Oil and gas producer SandRidge Energy on Thursday backed out from its plan to buy smaller rival Bonanza Creek Energy, giving in to pressure from activist investor Carl Icahn and other shareholders. Oklahoma-based SandRidge, which emerged from bankruptcy last year, had said in November that it would pay $746 million for Bonanza Creek to expand its presence in the Denver-Julesburg Basin of Colorado. Icahn, who is the single largest shareholder with a 13.5 percent stake, had called the offer "value-destroying" and said it provides "no obvious synergies nor economies of scale". Private investment firm Fir Tree Partners, which owns about 8.3 percent, had said the purchase would drain all of the oil and gas producer's cash. After talking to its top shareholders, SandRidge board on Thursday concluded that it would not receive approval for the transaction. As part of the mutual termination agreement, Bonanza will receive up to $3.7 million for transaction related expenses, SandRidge said. Shares of SandRidge were up 1.9 percent, while Bonanza Creek were down 1.8 percent in after market trading. (Reporting by Ahmed Farhatha in Bengaluru; Editing by Arun Koyyur) |
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SandRidge Energy
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CODE : SD |
ISIN : US80007P3073 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
SandRidge is a exploration company based in United states of america. SandRidge is listed in United States of America. Its market capitalisation is US$ 522.3 millions as of today (€ 457.6 millions). Its stock quote reached its lowest recent point on January 06, 2016 at US$ 0.15, and its highest recent level on March 28, 2024 at US$ 14.57. SandRidge has 35 850 000 shares outstanding. |