Hedge fund challenges timing on bid to replace SandRidge board
12/24/2012 2:10 PM
12/24/2012 2:11 PM
Hedge fund TPG-Axon, which wants to replace SandRidge Energy’s board of directors because it is unhappy with the company’s management, said Monday that it had filed a lawsuit in Delaware Chancery Court.
It said the lawsuit challenged the date SandRidge set for its shareholders to vote on a TPG-Axon proposal.
TPG-Axon, which said it owns 6.7 percent of SandRidge’s stock, maintains that it has not filed the formal consents that would start the 60-day clock on the shareholder voting process. SandRidge said in a filing with the U.S. Securities and Exchange Commission it had received the consents on Dec. 19.
“Sadly, we are not surprised that Tom Ward and the Board of Directors have resorted to shameful tricks to try and confuse shareholders and shorten the period of time in which they have to vote,” Dinakar Singh, founder and chief executive officer of TPG-Axon Capital, wrote in a news release on Monday.
TPG-Axon added in the news release that it planned on Monday to file documents with the SEC needed to solicit SandRidge’s shareholders to change recently enacted company bylaws and replace existing board members with a TPG-Axon slate.
Singh claimed in the release that Ward had disregarded shareholders’ interests by incurring lavish expenses and excessive debt.
SandRidge Energy, based in Oklahoma City, is one of the most active oil and gas companies in Kansas.
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