Cation Capital targets board seats at Crescent Point

Cation Capital, a private investmentfirm led by the former deputy head of global oil and gas atMacquarie Group, said on Monday it intends to nominate fourcandidates to Crescent Point Energy's board at ashareholders meeting next month.

Cation said it was "compelled to take this action given thesignificant destruction of shareholder value and the abjectfailure of the Canadian oil producer's current leadership acrossall aspects".

The firm, which does not have a website and could notimmediately be reached for additional comment, said it has beentalking to a special committee of Crescent's board, but thatdiscussions have failed to result in "meaningful progress."

Crescent Point, in return, said Cation's last-minute demandwas unreasonable and reckless, adding that the firm "appears tohave been created for the sole purpose of creating conflict andhavoc."

"We, therefore, believe Cation lacks credibility and isengaged in an ill-conceived and self-serving exercise," CrescentPoint said in a statement.

Cation's move comes as Calgary-based Crescent Pointstruggles to rein in costs. The oil and gas producer's operatingexpenses rose 5.4 percent in the fourth quarter ended Dec. 31,and it has been selling non-core assets to fund its capitalspending program and pay down debt.

On Monday, Cation said its director nominees hold, orexercise control of 1,478,772 common shares, representing 0.3percent of the company's total common shares, Reuters could notimmediately determine Cation's total stake in the company.

"Notwithstanding poor corporate performance over recentyears, remarkably executive compensation has ballooned, with anincrease of 17 percent in total compensation since 2016,"Cation's President Sandy Edmonstone, who oversaw global energyplatform operations at Macquarie, said in a letter addressed toCrescent Point's board last week.

Toronto-listed Crescent Point's shares have fallen about 47percent in the last 12 months, compared with an 8 percent risein the Canadian Energy Sector Index .

(Reporting by John Benny in Bengaluru; Editing by Bernard Orr)