Kimmeridge Energy Management withdraws merger offer for shale driller SilverBow Resources
(Bloomberg) 鈥 Shale oil driller SilverBow Resources Inc. dropped more than 6% after Kimmeridge Energy Management Co. withdrew a merger offer and said it鈥檒l focus on winning board seats.
鈥淕iven SilverBow鈥檚 lack of engagement, Kimmeridge sees no pathway towards a transaction,鈥 Kimmeridge said in a statement Tuesday.
The announcement is the latest salvo in a proxy fight that began when Kimmeridge proposed the merger to SilverBow through a deal it said would value the combined company at $3.6 billion. SilverBow said the offer undervalued it and urged shareholders to vote against Kimmeridge鈥檚 proposed director candidates.
SilverBow was down 5.7% to $30.52 at 10:36 a.m. in New York after earlier dipping to $30.38.
Kimmeridge owns about 13% of SilverBow shares and is among the most outspoken US oil and gas investors. SilverBow didn鈥檛 immediately respond to a request for comment.