Following Wednesday's close, the news hit that Carl Icahn had accumulated a 13.51% active stake in SandRidge Energy (SD). That large position has been amassed with a not-so-tacit aim of blocking SandRidge Energy's proposed acquisition of Bonanza Creek Energy (BCEI), which was announced on November 15.
Briefly, SandRidge proposed to acquire Bonanza Creek Energy for approximately $746 million, or $36.00 per share, comprised of $398 million in cash and 18.89 million shares of SD stock. The offer represented a 17.4% premium over BCEI's closing price on November 14.
The aforementioned offer was quickly criticized by investment firm Fir Tree Partners, which has an 8.2% active stake in SandRidge. Fir Tree plans to vote against the transaction, saying among other things that it reminds the firm of prior history where SandRidge's management team "...acquired disparate assets and added leverage with reckless abandon."
Carl Icahn called attention to the latter view when expressing his agreement with Fir Tree Partners' objection to the deal.
For Icahn's part, he deemed the Bonanza Creek transaction "nonsensical" and said he is eager to meet with SandRidge's management to hear how they could justify such a transaction that Icahn believes is "ill-advised, dilutive and value destructive."
The statement from Carl Icahn also noted that he is considering all options available, including reserving the right to call a special meeting of stockholders to remove SandRidge Energy's board of directors.