U.S. District Court Judge Rules Continental Resources Cleared for Shareholder Meeting

Article excerpt

A U.S. District Court judge has ruled that a Continental Resources shareholder meeting scheduled for Friday to vote on the company's $340 million acquisition of Wheatland Oil can proceed.

A Louisiana police pension fund fought in court to stop the meeting until more information about the transaction could be disclosed to shareholders.

Attorneys for the Louisiana Municipal Police Employees Retirement System argued on Wednesday that Continental has not disclosed adequate revenue and cost projections for Wheatland Oil in advance of the vote.

In a 26-page order issued Thursday, U.S. District Court Judge Timothy DeGiusti ruled that Continental has given shareholders enough information to determine if the purchase was a good deal. He also ruled that the pension fund had not shown that it would be irreparably harmed if Friday's vote proceeds.

The pension fund had also asked the court to block a trustee who oversees a trust that benefits Continental CEO and Chairman Harold Hamm's children from voting on the Wheatland deal. Attorneys for the pension fund argued that allowing the trustee to vote would be a conflict of interest because of his personal ties to Hamm. …