2017-11-29 07:42:00 Wed ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
The octogenarian billionaire and activist investor Carl Icahn mulls over steps to shake up the board of SandRidge Energy after the oil-and-gas company adopts a poison pill that aims to prevent him from scooping up more shares.
Icahn became the company's largest shareholder after he personally disclosed a 13.5% equity stake in SandRidge in November 2017. He has taken issue with the board's strategic plan to buy Bonanza Creek Energy for $750 million in cash and stock. From Icahn's perspective, this irrational deal demonstrates executive exuberance and overvaluation that would ultimately erode shareholder value.
In response, SandRidge introduces the poison pill in order to stop blockholders such as Carl Icahn and Fir Tree Partners from buying more equity stakes above the 10% threshold. Fir Tree has complained that the Bonanza deal would depart substantially from SandRidge's 2016 exit from bankruptcy because the current bid is way too high and so makes little business sense. In addition to this highly controversial poison pill, SandRidge's directors may or may not have breached any triads of fiduciary duty (good faith, loyalty, and due care) in a way that would be commensurate with the business judgment rule.
Although it is difficult to anticipate how the poison pill and its concomitant board fight will unravel over time, Icahn's race toward the top can be long and arduous. Time will tell whether his board battle proves worthy and enhances sustainable shareholder wealth creation.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2020-05-14 12:35:00 Thursday ET

Disruptive innovators can better compete against luck by figuring out why customers hire products and services to accomplish jobs. Clayton Christensen, T
2019-12-04 14:35:00 Wednesday ET

Many billionaires choose to live below their means with frugal habits and lifestyles. Those people who consistently commit to saving more, spending less, an
2020-11-03 08:30:00 Tuesday ET

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty. Heidi Gardner (2017
2025-05-29 08:25:28 Thursday ET

Serial venture capitalist Ben Horowitz describes many hard truths, lessons, and insights from his entrepreneurial journey of running LoudCloud from a Silico
2024-03-19 03:35:58 Tuesday ET

U.S. presidential election: a re-match between Biden and Trump in November 2024 We delve into the 5 major economic themes of the U.S. presidential electi
2022-02-22 09:30:00 Tuesday ET

The global asset management industry is central to modern capitalism. Mutual funds, pension funds, sovereign wealth funds, endowment trusts, and asset ma