Oklahoma-based SandRidge Energy adopts 'poison pill' plan
SandRidge Energy Inc. directors on Monday adopted a stockholder rights plan that could protect the company from an unwanted takeover attempt.
SandRidge Energy Inc. directors Monday took steps to protect the company from a hostile takeover after two shareholders called for management changes.
Commonly known as a “poison pill,” SandRidge's new stockholder rights plan would dilute the voting power of large, active shareholders.
“Today's actions are designed to protect the interests of all our stockholders,” SandRidge said in a statement Monday. “The board and management look forward to continuing to engage in constructive dialogue with stockholders regarding our plans for the business and remain committed to improving performance and enhancing stockholder value.”
Under the terms of the plan, if an active investor controls 10 percent of the company or a passive institutional investor controls 15 percent, other shareholders would have the right to buy additional shares at a reduced price.
SandRidge spokesman Greg Dewey said the plan provides a significant penalty for activist investors.
“It's not an unusual move at all for companies in our position,” said Dewey, SandRidge's vice president of communications and community relations.
Analyst Mark Hanson said the poison pill language sends a clear message.
“It's not subtle, and it's clear they're doing everything they can to circle the wagons and make sure no one comes in and gets a big position,” said Hanson, an analyst with Morningstar Inc. in Chicago.
“I see why they did it, but poison pills generally are not viewed as a shareholder-friendly move.”
Monday's action comes after two investors over the past two weeks called for the ouster of CEO Tom Ward and changes to the company's board.
Business Photo Galleriesview all
- 33746Oklahoma tornadoes: The 'Big Dog,' the little boy and the hug that triumphs over tragedy
- 15554Bradley Cooper, Zach Galifianakis, Ed Helms drink in success of 'Hangover' series
- 10129Oklahoma tornadoes: Woman meets the military officer who shared the clothes off his back
- 9883Hobby Lobby argues case before federal judges
- 9568Oklahoma tornadoes: Thunder reverses the role, takes a turn at cheering on the community
- 8114Blake Shelton's "Healing the Heartland" televised tornado benefit set for Wednesday at Chesapeake Energy Arena
- 8089Story behind the photo: Family members describe desperate search for one another after EF5 twister