Icahn set to nominate slate of directors to SandRidge board

SandRidge Energy Inc. shares surged more than 9 percent Thursday after activist investor Carl Icahn said he plans to nominate a slate of directors to the company's board and is considering making an offer to buy the Oklahoma City-based oil and natural gas producer.

In a regulatory filing late Wednesday, Icahn said he has “grave concerns” with the process the current board began last month to solicit and consider offers including joint ventures, asset sales and merger deals.

As a result of the concern, Icahn and his partners said they will nominate a full slate of directors who “would publicly commit to run — in a fair and timely manner — its own formal process to evaluate strategic alternatives, which would include a commitment to submit the highest and best offer to a vote of (SandRidge) stockholders.”

If his directors are elected, Icahn said, he would be willing to “make an all-cash offer” for the company.

A SandRidge spokeswoman declined to comment Thursday.

Icahn in October and November spent $82 million to buy 13.5 percent of SandRidge stock. Along with Fir Tree Partners — SandRidge's secondlargest shareholder — Icahn has since led the SandRidge directors to cancel their planned $746 million purchase of Denver-based Bonanza Creek Energy, lay off 80 Oklahoma City employees and fire CEO James Bennett and Chief Financial Officer Julian Bott.

Tulsa-based Midstates Petroleum Inc. in February publicly disclosed its offer to take over the Oklahoma City company. SandRidge directors last month rejected that plan, but began the broader solicitation offer and invited Midstates executives to resubmit a proposal.

SandRidge stock surged $1.21, or 9.1 percent, Thursday to close at $14.55 a share.