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Corvex warns of proxy fight with Energen after raising stake

[BENGALURU] Corvex Management threatened a proxy battle against Energen Corp if the oil and gas producer did not agree to add the activist investor's nominees to its board.

Corvex - already the biggest shareholder in Energen - raised its stake to 10.1 per cent and asked the company to expand its board to 15 members and fill the new vacancies with the hedge fund's nominees.

The US$5.5 billion fund controlled by activist investor Keith Meister said in case it could not reach an agreement with Energen, it would seek a special shareholder meeting to approve the board expansion.

Energen, which currently has nine members on its board, was not immediately available for comment.

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Corvex first targeted Energen on May 31 and called for a potential sale of the company, citing that the recent wave of acquisitions in the Permian Basin made its assets more valuable.

Energen said in June that it would stick to its business plan after reviewing the fund's proposal.

Energen shares were up 1.8 per cent at US$50.10 in late morning trading on Monday. The stock had fallen nearly 14 per cent since Corvex's first move in May.