SandRidge asks shareholders to reject TPG-Axon's proposal-filing

Fri Dec 28, 2012 8:09pm EST

Dec 28 (Reuters) - SandRidge Energy Inc urged its shareholders to reject hedge fund TPG-Axon Capital's bid to oust the board of the U.S. oil and gas company.

SandRidge said in a regulatory filing late on Thursday that TPG-Axon, which currently owns about 6.7 percent of its stock, is seeking to take control of SandRidge without having to pay a "control premium to other shareholders." []

"None of the TPG-Axon Group nominees have any meaningful experience drilling or operating onshore unconventional oil and gas wells such as those being actively developed by the company in the Mississippian play," SandRidge said.

TPG-Axon said in its third letter to SandRidge's board, dated Dec. 24, that it was giving shareholders a chance to "terminate your reign of value destruction". It said it would file consent solicitation documents with U.S. regulators on Monday.

TPG-Axon said that after its consent solicitation was mailed to shareholders in early January, stockholders of record as of Dec. 13 would have up to 60 days to submit consent for TPG-Axon's proposals.

TPG-Axon and another large shareholder, Mount Kellett Capital, have been pressing SandRidge to replace its board and chief executive and for an outright sale of the company.

TPG-Axon had called for SandRidge to consider selling itself and for Chief Executive Tom Ward to step down in November.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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