Fir Tree Partners said it’s joining Carl Icahn in opposing SandRidge Energy’s plan to issue shares to fund a $750m takeover of a rival oil explorer Bonanza Creek Energy. Fir Tree said that the stock issuance would be “extremely destructive” and dismissed the proposed purchase as "nonsensical empire-building." The New York-based hedge fund said it owns about 8.2% of SandRidge shares, while Icahn owns 13.5%. In an interview with CNBC, Icahn, who has been critical of SandRidge’s business model, called the proposal “a bad idea.”
Fir Tree Partners said it’s joining Carl Icahn in opposing SandRidge Energy’s plan to issue shares to fund a $750m takeover of a rival oil explorer Bonanza Creek Energy. Fir Tree said that the stock issuance would be “extremely destructive” and dismissed the proposed purchase as "nonsensical empire-building." The New York-based hedge fund said it owns about 8.2% of SandRidge shares, while Icahn owns 13.5%. Holders of more than 25% of the company have come out against the deal.