Hedge Fund Continues Criticism of OKC-Based SandRidge Energy Management
Brianna Bailey; Sarah Terry-Cobo, THE JOURNAL RECORD
The hedge fund calling for governance reforms at SandRidge Energy described the company's management as a culture of cronyism and waste in its latest letter to shareholders on Tuesday.
In a letter featured on the website www.shareholdersforsandridge.com and in a full-page ad in The Oklahoman newspaper, the hedge fund TPG-Axon Capital Management continued to criticize the company's direction.
TPG-Axon owns a 6.5-percent stake in SandRidge. The company has begun a consent solicitation process, urging shareholders to vote to amend the company's bylaws.
The private equity firm wants to shake up SandRidge's board of directors by de-staggering board elections and allowing for incumbent directors to be removed without cause, as well as the ability to replace the company's directors with nominees of its own choosing.
"We believe that there is significant unrealized value in SandRidge Energy Inc.," TPG-Axon wrote. "However, we believe that the market has lost confidence in the SandRidge management team and board of directors, as evidenced by the dramatic decline in the stock, and that this destruction of stockholder value has been caused by: the lack of a coherent, predictable strategy; poor strategic planning and reckless spending has resulted in massive dilution, soaring cost of capital, and unnecessary risks for stockholders; and, a culture of cronyism and waste that has led to enormous value drained from stockholders for the personal benefit of management and directors."
SandRidge has set Thursday as the deadline for shareholders to determine whether they are eligible to vote for the reforms TPG- Axon is pursuing. …