Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, April 20, 2018

Article Excerpt

CRESCENT POINT ENERGY CORP., $10.79, symbol CPG on Toronto, produces oil and natural gas in Saskatchewan, North Dakota and Utah. Its main focus is the Bakken light oil development in southeastern Saskatchewan. Alberta-based activist investor Cation Capital owns just 0.3% of the energy producer. Still, it wants to put four of its own nominees on the company’s board of directors at its annual meeting in May. One of Cation’s major criticisms of Crescent Point is what it perceives as the company’s high executive pay despite its poor performance. Crescent Point stock is down along with most oil and gas producers, but the company believes it’s in the middle of a turnaround plan that’s generating better results. In fact, on April 12, 2018, Crescent Point sent a letter to shareholders explaining why they should vote back in the existing 10-person board—and none on the slate of nominees put forward by Cation. It also told investors that the activist investor has no plan and would…

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