Independent proxy advisory firm Institutional Shareholder Services Inc. took SandRidge Energy Inc.'s side in its battle with activist investor Carl Icahn, recommending that SandRidge's shareholders vote for the company's nominees instead of Icahn's full slate of director candidates.
SandRidge urged its shareholders to vote for installing its five "highly-qualified and experienced" director nominees plus two of Icahn's independent nominees to the board. ISS said Icahn's campaign failed to provide a plan for the company, only asking shareholders to trust that "it will do the right thing," according to a June 6 news release from SandRidge.
"Regardless of any assurances of a fair process, that level of trust would be easier to gain were it not for the fact that the dissident is actively participating in a process to potentially acquire the company," ISS said in its report.
SandRidge said ISS echoed its sentiments that an Icahn-controlled board "would end the current impartial review process, drive away competition and position Icahn to consolidate control of SandRidge as cheaply as possible."
Another independent proxy advisory firm, Glass Lewis & Co., had also recommended that SandRidge shareholders reject Icahn's proposal to appoint his current or former employees to the board.
Shareholders are set to vote during the company's annual meeting June 19.
