Nov 8 (Reuters) - One of SandRidge Energy Inc’s top shareholders called for the oil and gas company to considering selling itself and for Chief Executive Tom Ward to step down, saying management’s strategy has been “incoherent, unpredictable and volatile.”
Investor TPG-Axon, which said it owns more than 4.5 percent of SandRidge, sent a letter to the company on Thursday in which it also called for SandRidge’s board to be significantly reconfigured.
TPG-Axon said in the letter it believes SandRidge could be worth $12 to $14 per share, compared with its current $6-a-share value as of closing on Wednesday.
“SandRidge stock performance has been nothing short of disastrous, on both an absolute and relative basis, since the company’s IPO in 2007,” TPG-Axon founder Dinakar Singh wrote in a letter to the SandRidge board.
Singh wrote that even when considering the financial crisis and the collapse of natural gas prices, “many of the (company‘s) wounds have been self-inflicted.”
He pointed to what he called appalling corporate governance and reckless spending that “has resulted in repeated financial emergencies, and caused massive dilution, soaring cost of capital, and unnecessary risks for shareholders.”
SandRidge could not immediately be reached to comment.