March 19, 2018 / 10:06 PM / in 8 months

SandRidge rejects Midstates offer; to explore strategic options

(Reuters) - Oil and gas producer SandRidge Energy Inc (SD.N) on Monday rejected smaller rival Midstates Petroleum Co Inc’s (MPO.N) all-stock bid, calling the offer “highly dilutive”.

However, the company said it had received interest regarding “alternative transactions” from other producers. SandRidge did not provide further details.

“Midstates Petroleum continues to believe in the merits of the SandRidge Energy transaction proposed on Feb. 6, 2018. Midstates is considering its options with respect to that transaction,” Midstates Petroleum spokesman said.

SandRidge also said it would explore strategic options, including divestment or joint venture opportunities at its North Park Basin assets in Colorado.

Oklahoma-based Midstates Petroleum, backed by activist shareholder Fir Tree Partners, had offered to buy SandRidge last month, after activist shareholder Carl Icahn scuppered SandRidge’s plans to buy Bonanza Creek Energy Inc (BCEI.N).

Under Midstates offer, SandRidge shareholders were to hold 60 percent of the combined company.

SandRidge’s shares fell 2.8 percent in aftermarket trading, while Midstates’ stock was up 2.2 percent.

Reporting by John Benny in Bengaluru and Rishika Chatterjee in Bengaluru; Editing by Shounak Dasgupta

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