Energy

Activist Carl Icahn plans a boardroom battle for SandRidge Energy as he advocates a sale

Key Points
  • Activist investor Carl Icahn said he plans to nominate directors who would push for a sale of SandRidge Energy and may make an offer himself.
  • Icahn has "grave concerns" about current directors' ability to decide the company's future and will nominate his own slate at the annual meeting.
  • Icahn owns about 13.5 percent of SandRidge and is the company's single largest shareholder.

Activist investor Carl Icahn said on Wednesday he plans to nominate directors who would push for a sale of SandRidge Energy and may make an offer himself for the embattled Oklahoma City oil and gas producer.

Icahn, who owns about 13.5 percent of SandRidge and is the company's single largest shareholder, said he had "grave concerns" about current directors' ability to decide the company's future and will nominate his own slate at the annual meeting.

The current board "had a history of making poor decisions on behalf of stockholders," Icahn wrote in a filing with the U.S. Securities and Exchange Commission.

Ashley Wilemon, a representative of SandRidge, said the company would not comment on Icahn's characterization of the board or proposal to nominate his own slate of directors.

Carl Icahn speaking at Delivering Alpha in New York on Sept. 13, 2016.
David A. Grogan | CNBC

Icahn also said he may be willing to make an all-cash offer for SandRidge shares that would allow existing shareholders to sell or continue with their holdings, according to the filing.

The billionaire investor last year successfully fought to block SandRidge's $746 million deal to acquire rival Bonanza Creek Energy Inc.

SandRidge shares have fallen 37 percent this year. They closed down 10 cents at $13.34 on Wednesday, giving the company a market value of $475.5 million.