SandRidge Says to Evaluate Buyout Offers, Including Icahn’s (Reuters)
(Reuters) – SandRidge Energy Inc (SD.N) yielded to demands from top shareholder Carl Icahn on Monday and said it would evaluate any buyout offers, including one promised last week by the hedge fund manager himself. One of the best known of the hedge fund world’s aggressive activist players who seek major changes in company strategies, Icahn has been railing against the Oklahoma-based shale oil driller’s management for months. The company has already made substantial changes in response, in February replacing both its chief executive and finance chief. Icahn, who holds a 13.5 percent stake, also convinced SandRidge to back out of a $746 million deal to acquire Bonanza Creek Energy (BCEI.N) last year.
Hedge Fund Adage Reaps Big Initial Gain on Health-Care Takeover (Bloomberg)
Adage Capital Management, a $30 billion hedge fund founded by two former money mangers from Harvard University’s endowment, reaped an initial gain of more than $100 million Monday after Swiss drugmaker Novartis AG agreed to acquire AveXis Inc. AveXis, which has a promising drug to treat a rare disease that afflicts infants, rose 80 percent to $208.05 a share at 9:32 am in New York trading. Novartis’ $8.7 billion offer represented an 88 percent premium to AveXis’ Friday closing price.
Oil Trader Andurand’s Hedge Fund Fell in First Quarter: HSBC (Reuters)
LONDON (Reuters) – Oil trader Pierre Andurand’s hedge fund lost 6.7 percent in the first quarter of 2018 after recouping some of the heavy losses suffered in February, data compiled by HSBC showed. Andurand Capital made gains of 3.6 percent in March after losing 14.5 percent in February, following returns of 5.2 percent in January, the data showed. A spokesman for Andurand Capital declined to comment. Many commodities-focused hedge funds lost out on trades in commodities and energy betting on higher prices in February, a separate report from industry tracker Eurekahedge showed.
Bank Notes: After Buying Stake in Navient, Hedge Fund Wants Board Seat (BizJournals.com)
Navient said it received a notice of a regulatory filing from Los Angeles-based hedge fund Canyon Capital Advisors that indicated it would like a board seat on the student loan servicer. Canyon has purchased about 7.8 percent of Navient ’s stock for what is estimated to be valued at more than $260 million, according to the Schedule 13D filing with the Securities and Exchange Commission. Companies are required to file 13D’s when purchasing more than 5 percent of another companies shares. Canyon, which has more than $20 billion in assets, said in its filing that it discussed a vacant seat on the Navient board and the financial performance of the company.