Today, Fairfax Financial Guru,
, has increased his stake in controversy-ridden SandRidge Energy
) by 9.12 percent, reported by
GuruFocus Real Time Picks
This latest transaction adds about 5 million shares to Watsa's
last reported holding, bringing his total share count to
The last time he increased his stake in SandRidge was November,
when he added 1,152 percent, bringing his ownership to 10.5
percent of shares outstanding, at the time. (
To read more about his previous stake increase, read
Prem Watsa Surges in SandRidge Stake, Amidst
Company Management Shakeup.
Watsa's move on the energy stock came just days after TPG-Axon
Capital, who is 6.7 percent owner of SandRidge's outstanding
shares, sent its third letter to the company's board of
directors, breaking the news that it has filed a lawsuit to The
Delaware Chancery Court to dispute the validity of the initial
consent date that SandRidge declared in its Dec. 21 8-K filing,
claiming that the company is intentionally making the voting
conditions more difficult for shareholders in the process of
replacing SandRidge's current board of directors.
Other barriers, which TPG-Axon included in the letter claiming
SandRidge's management has placed a burden on shareholders in the
voting process, include putting a poison pill in place and
issuing an additional $37 million of shares to senior management.
"Now, the company attempts to shorten the period of time in which
shareholders have to vote, claiming it has received consents in
our solicitation - which is impossible as we have yet to even
request them!" said Dinakar Singh, founder and CEO of TPG-Axon.
"These are all just additional examples of Tom Ward and the Board
of Directors' utter disregard for shareholder interests."
In addition to the recent lawsuit brought upon SandRidge, and
aside from TPG-Axon announcing a number of more recent
"disturbing facts that have recently been brought to their
attention," TPG accused SandRidge CEO Tom Ward and his son Trent
of engaging in the unethical act of front running the company.
"We demand the Board disclose the degree to which it was aware of
these actions. If the Board was unaware of these activities, then
you should take immediate steps to investigate these serious
transgressions and seek redress," CEO Singh said. "On the other
hand, if you were aware of the nature of these activities, then
it is clear that you have been willing enablers of the greedy and
unethical behavior that has caused enormous damage to
These aggressive attempts to overthrow and replace SandRidge's
management have been plaguing the company for months, as
TPG-Axon, and other shareholders continuously released what they
felt were reasons upon reasons for the company's mismanagement.
This fact doesn't seem to faze Watsa, however, who has deluged
his portfolio with SandRidge shares, since only starting out with
280,000 shares in the third quarter of 2008.
Currently, SandRidge stock is up 0.8 percent, at $6.31 per share,
a few minutes before the market's close. Year to date,
SandRidge's market value has gone down about 23 percent.
SD data by GuruFocus.com
View more of SandRidge's data on 10-Year Financials. Also view
the rest of Prem Watsa's latest portfolio picks here.
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