“We challenge the board to either do something, or make clear they will not. Stockholders cannot afford more inactivity or delay by their board.”
SandRidge declined further comment on Monday.
TPG-Axon has accused WCT Resources LLC, a company formed by trusts created for Ward's children, of buying mineral leases in the area then selling them to SandRidge, often maintaining an interest in future wells.
The hedge fund rejected the notion that WCT is an independent company, noting it is run by Ward's son and recently shared an address with SandRidge.
“We challenge the board to show that the pattern of overlap between WCT Resources and SandRidge is modest compared to that of others. It is simply astonishing that family-controlled entities are active in the same business that SandRidge is active in,” TPG-Axon said. “It is even more astonishing that these entities have frequently, as opposed to rarely, appeared ahead of, or alongside, SandRidge in areas of interest.”
As a result of its concerns about the company, TPG-Axon is asking fellow SandRidge shareholders to oust Ward and other board members in favor of its own slate of directors.
The ongoing consent solicitation will be open until next month.