From The Associated Press
OKLAHOMA CITY — A company that drills for oil in northern Oklahoma and western Kansas is urging shareholders to block an investor initiative that would restructure its board.
SandRidge Energy on Wednesday posted a letter on its website asking shareholders to oppose a move by investor TPG-Axon Group that seeks a fresh group of people to oversee the Oklahoma City-based company's operations.
TPG-Axon released documents the day before regarding land purchases in Oklahoma and Kansas, which the investor group argued indicated a conflict of interest on the part of the company.
The papers cite land purchases across 22 counties in Oklahoma and Kansas from WCT Resources, which TPG-Axon said is improper because the entity is controlled by a family trust of SandRidge CEO Tom Ward.
The land is in the highly sought-after Mississippi Lime rock formation.
SandRidge said in the letter that if the TPG-Axon proposal is approved, board members would be picked only by the investor group. The company also said the board found no indication of impropriety in the transactions, which the board reviewed beforehand. The purchases were disclosed in public filings.
Dinakar Singh, founder of New York City-based TPG-Axon, said he's unsatisfied with the board members' response thus far. TPG-Axon owns 7 percent of the company's shares.
"They've never really challenged our facts on the land acquisition," he said.
SandRidge didn't comment beyond its shareholders letter.
AP Source: The Journal Record