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Actionable news in SD: SANDRIDGE ENERGY Inc,

SandRidge Energy sets shareholder rights plan amid Bonanza bid

(Reuters) - SandRidge Energy Inc said on Monday it adopted a shareholder rights plan, known as a “poison pill”, amid rising opposition from major shareholders to the oil producer’s $746 million bid for rival Bonanza Creek Energy.

Bonanza Creek’s shares were up 2.2 percent at $29 in premarket trading on Monday.

Activist investor Carl Icahn last week became the second major shareholder to oppose the bid after disclosing a 13.51 percent stake in SandRidge.

Icahn follows fellow activist investor Fir Tree Partners, which said last Monday that the deal would drain all of SandRidge’s cash.

Fir Tree owns about 8 percent of SandRidge.

Oklahoma City-based SandRidge said on Monday the rights plan had a trigger of 10 percent and will expire on Nov. 26, 2018.

SandRidge emerged from bankruptcy late last year, while Bonanza emerged from bankruptcy in April following a recovery in oil prices after a two-year slump.