$OBE Obsidian Energy and activist investor FrontFour Capital have been trading insults this week over the appointment of new directors, which the company says would give the hedge fund control over its board.
FrontFour had launched the fight on Tuesday by nominating four directors to OBE’s nine-person board, with the company saying the moves are a distraction and that it has cooperated with the hedge fund by already adding retired investment banker Gordon Ritchie to the board.
FrontFour did suggest Ritchie as a director but OBE already was considering him for a board seat, says FrontFour's Stephen Loukas, who is being nominated by his firm as a board member; FrontFour owns 6.2% of OBE’s shares.
The hedge fund wants OBE to sell off its older natural gas assets and operations in two Alberta oil and gas formations to focus solely on its properties in the Cardium light oil formation.
FrontFour had launched the fight on Tuesday by nominating four directors to OBE’s nine-person board, with the company saying the moves are a distraction and that it has cooperated with the hedge fund by already adding retired investment banker Gordon Ritchie to the board.
FrontFour did suggest Ritchie as a director but OBE already was considering him for a board seat, says FrontFour's Stephen Loukas, who is being nominated by his firm as a board member; FrontFour owns 6.2% of OBE’s shares.
The hedge fund wants OBE to sell off its older natural gas assets and operations in two Alberta oil and gas formations to focus solely on its properties in the Cardium light oil formation.
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