A war of words between iconic investor Carl Icahn and SandRidge Energy directors ensued less than a week prior to a key shareholder vote. The two sides traded barbs as SandRidge directors roundly criticized Icahn and his plan to obtain a controlling share of the company’s board.
Icahn wasted no time in responding with a pointed attack at the SandRidge directors.
— Carl Icahn (@Carl_C_Icahn) June 14, 2018
“In a last-ditch, desperate attempt to distract your attention away from their own horrible record, the incumbent directors have seen fit to hand millions upon millions of your dollars to ‘defense’ advisors to create pretty, colorful charts which intentionally misrepresent our investment record in the energy sector,” said Icahn in a letter to SandRidge shareholders.
In a letter to shareholders, SandRidge directors reiterated their request that investors re-elect all five SandRidge directors along with two of Icahn’s nominees. In addition, the current directors repeated their criticism of Icahn’s plans to work with former SandRidge president and COO Matthew Grubb on a “debt-fueled acquisition spree” that devalued the company and its share price.
“Icahn is seeking to gain control of the company without paying an appropriate premium and disrupt the ongoing strategic review process at the expense of other shareholders,” the directors said in a letter. “There is no benefit to providing Icahn with additional board representation beyond the two independent nominees your board already recommends.”
Four ETFs with heavy exposure to SandRidge Energy were down today–Cambria Value and Momentum ETF (BATS: VAMO) was down 0.67%, QUANTX Risk Managed Multi-Asset Inc ETF (BATS: QXMI) was down 0.65%, First Trust Dow Jones Sel MicroCap ETF (NYSEArca: FDM) was down 0.20%, and First Trust Natural Gas ETF (NYSEArca: FCG) was down 0.74%.
For more energy-related news affecting ETFs, click here.