ARD gets chance to get a better offer

[dan_s]

This could be a big deal as my Fair Value estimate for ARD is $44/share. - Dan

OKLAHOMA CITY (AP) -- Oil and gas operator SandRidge Energy Inc. said Wednesday it agreed to pay more cash to Arena Resources Inc. shareholders and let Arena seek other takeover offers.

The changed agreement lets Arena solicit other bids until July 1, and the termination fee if Arena finds a better offer was cut to $39 million from $50 million.

The companies said Arena shareholders will be able to convert each share into 4.7771 shares of SandRidge plus $4.50. Under the $1.6 billion deal announced in April, Arena shareholders would have received $2.50 in cash plus the SandRidge shares. Since then, shares of SandRidge have declined 22 percent.

Shares of Arena rose $1.21, or 3.9 percent, to $32.56; SandRidge shares fell 5 cents to $6.05 in morning trading.

Directors of both companies approved the change, which is subject to approval by both groups of shareholders, who are scheduled to meet July 16.

Arena Chairman and co-founder Tim Rochford said he was confident in closing the sale to SandRidge. Arena has oil and gas operations in Texas, Oklahoma, Kansas and New Mexico.

SandRidge has said the deal will let it add low-risk drilling opportunities in the southern plains.