SandRidge Energy Inc. on Friday clarified its argument against the leadership change being pursued by one of its largest shareholders.
Hedge fund TPG-Axon Capital is asking fellow shareholders to oust CEO Tom Ward and the rest of the SandRidge board, citing the poor performance of the company's stock since its initial public offering in 2007.
SandRidge directors have urged shareholders to vote against TPG-Axon's plan to replace them, claiming the new board members proposed by the hedge fund do not have the necessary experience to guide the company. A key point in a Dec. 27 regulatory filing was a potential $4.3 billion price tag for a “change in control” at the company.
The company had said the change would trigger a default on its credit agreement, requiring SandRidge to offer to buy back all of its outstanding senior notes.
In a filing Friday, SandRidge said such an offer likely would be denied because those notes are trading for more than the repurchase price specified in its indentures. It concluded a change in control would not have a “material consequence” at this time.