Shale driller SilverBow Resources Inc. dropped more than 6% after Kimmeridge Energy Management Co. withdrew a merger offer and said it’ll focus on winning board seats.
“Given SilverBow’s lack of engagement, Kimmeridge sees no pathway towards a transaction,” 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’s 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’t immediately respond to a request for comment.
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