One of Equal Energy Ltd.'s largest shareholders isn't sold on the proposed deal to sell the company.
California-based Lawndale Capital Management LLC contends Equal's shareholders may not receive adequate compensation from the proposed $230 million deal.
Petroflow Energy Corp. has offered to buy all outstanding shares of Equal for $5.43 each.
That deal was approved unanimously by Equal's board, but two-thirds of the company's shareholders still must sign off on it.
Lawndale and its affiliate funds own more than 1.7 million shares of Equal. The company's operations are focused in central Oklahoma's Hunton formation.
Equal officials had been negotiating with Tulsa-based Petroflow since Nov. 18 before announcing the proposed deal on Monday.
Equal officials concluded the Petroflow acquisition is in the best interest of the company's shareholders, but Lawndale President Andrew Shapiro questioned the “fairness” of the deal.
He said Equal shareholders deserve more information.