Crescent Point Energy Fights Back Against Activist Investor

Crescent Point Energy Corp. (CPG,CPG.TO) closed slightly higher on Monday, backing down from a 3% advance previously in the session that followed the the Canadian oil and natural gas producer moving to head off an activist investor’s bid to pack the company’s board with its nominees.

Cation Capital, which owns about 0.3% of Crescent point stock, according to the company, has nominated four director candidates to stand for election to the Crescent Point at its upcoming 2018 annual general meeting, a move the company is blasting as solely bid by the private investors to “disrupt the company’s progress with a self-interested effort to achieve short-term benefits” and later accused Cation of acting solely “for the sole purpose of creating conflict and havoc.”

Crescent Point also said Cation proprietor Sandy Edmonstone failed to present an action plan or ideas of any substance for value creation during a recent meeting with independent board members for the company and also did not indicate it had support from other shareholders. “We believe Cation lacks credibility and is engaged in an ill-conceived and self-serving exercise,” the company said in a statement, later adding, “It would be irresponsible for the board to abruptly cater to unreasonable demands that are not in line with good governance practices.”

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