Strine's SandRidge Ruling Hands Activist Investors New Tool

Law360, New York (March 12, 2013, 9:39 PM EDT) -- A ruling last week by Delaware Chancellor Leo Strine will make it harder for companies to head off activist challenges by hiding behind their loan covenants, adding another cudgel to the activist toolkit heading into proxy season, attorneys say.

Chancellor Strine on Friday blocked SandRidge Energy Inc.'s board from interfering with hedge fund TPG-Axon Capital Management LP's attempt to nominate its own slate of directors for the energy company. In doing so, he essentially stripped boards of a defense sometimes used to keep dissident directors at...
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