Arena Resources (ARD) Announces Expiration of 'Go Shop' Period Over Merger Agreement with SandRidge (SD)
Arena Resources, Inc. (NYSE: ARD) announced today the expiration of the “go shop” period allowed under its amended merger agreement with SandRidge Energy, Inc. (NYSE: SD).
During the 30-day “go shop” period which commenced on June 1, 2010, Arena was permitted to solicit, initiate and encourage the submission of takeover proposals, participate and engage in discussions or negotiations, and take actions to facilitate inquiries that reasonably could be expected to lead to a “Company Superior Proposal,” as defined in the amended merger agreement.
Commencing June 1, 2010, at the direction of Arena, SunTrust Robinson Humphrey, Inc. ("SunTrust") contacted 24 parties that, following discussions between Arena and SunTrust, were identified, based on size and commonality of business interests, as potential strategic partners who would be capable of pursuing a transaction with Arena. Despite the solicitation of interest, none of these parties entered into a confidentiality agreement or submitted a takeover proposal.
During the “go shop” period, two additional companies, each with a market capitalization smaller than Arena’s, contacted Arena and submitted preliminary proposals, each of which was subject to a number of conditions. After a review of each proposal, it was determined that neither proposal constituted, or could reasonably be expected to result in, a Company Superior Proposal.
Commenting on the expiration of the “go-shop” period, Tim Rochford, Chairman and Co-Founder of Arena, noted, “Having concluded the 30-day “go-shop” period, the board of directors of Arena is fully satisfied that it has concluded a broad and rigorous process designed to enable Arena stockholders to receive maximum consideration for their shares. The Arena board continues to be firmly of the view that a combination of Arena and SandRidge represents the best possible strategic alternative for Arena at a fair price for its stockholders.”
During the 30-day “go shop” period which commenced on June 1, 2010, Arena was permitted to solicit, initiate and encourage the submission of takeover proposals, participate and engage in discussions or negotiations, and take actions to facilitate inquiries that reasonably could be expected to lead to a “Company Superior Proposal,” as defined in the amended merger agreement.
Commencing June 1, 2010, at the direction of Arena, SunTrust Robinson Humphrey, Inc. ("SunTrust") contacted 24 parties that, following discussions between Arena and SunTrust, were identified, based on size and commonality of business interests, as potential strategic partners who would be capable of pursuing a transaction with Arena. Despite the solicitation of interest, none of these parties entered into a confidentiality agreement or submitted a takeover proposal.
During the “go shop” period, two additional companies, each with a market capitalization smaller than Arena’s, contacted Arena and submitted preliminary proposals, each of which was subject to a number of conditions. After a review of each proposal, it was determined that neither proposal constituted, or could reasonably be expected to result in, a Company Superior Proposal.
Commenting on the expiration of the “go-shop” period, Tim Rochford, Chairman and Co-Founder of Arena, noted, “Having concluded the 30-day “go-shop” period, the board of directors of Arena is fully satisfied that it has concluded a broad and rigorous process designed to enable Arena stockholders to receive maximum consideration for their shares. The Arena board continues to be firmly of the view that a combination of Arena and SandRidge represents the best possible strategic alternative for Arena at a fair price for its stockholders.”
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