The Santos Ltd (ASX: STO) share price is in the negative territory on Monday. This comes amid fresh concerns regarding the chairman of the company’s merger target, Oil Search Ltd (ASX: OSH).
At market close, shares in the oil and gas giant are fetching $6.42, down 0.54%. Meanwhile, the company’s shares have gained 11% over the past 12 months. Comparatively, the S&P/ASX 200 Index (ASX: XJO) has rallied nearly 24% over the same time period.
So, what’s all the fuss about on Monday?
Oil Search management muddies merger
Firstly, some background… On 19 July this year, previous Oil Search Chief Executive Dr Keiran Wulff abruptly resigned from his position. Based on the release, the resignation with immediate effect came as Dr Wulff suffered a deterioration in a long-term medical condition.
However, the announcement also specified that the board had entered into discussions with Wulff following the receipt of complaints regarding his behaviour. In specific terms, the behaviour was said to be, “inconsistent with the standards expected by the Board in relation to his management style.”
Fast forward to today, now there are fresh revelations in relation to the matter. According to reports by The Australian, the whistleblower whose complaints resulted in the shock exit of Wulff now holds concerns the previous CEO was too close to Oil Search Chairman, Rick Lee. As a result, the whistleblower fears the closeness may jeopardise the chances of a fair enquiry into the complaint.
It is believed that both Wulff and Mr Lee would speak as frequently as four to five times a day regarding a range of matters. Reportedly, this also led to the sense of exclusion from the other executives on the board.
Impacting the Santos share price
These latest developments throw a further spanner in the works for Santos as it plans to merge with the Papua New Guinean oil and gas producer. The Santos share price has been falling over the past month as it contends with potential blockades.
For example, the PNG government recently made it clear that it held power over the merger. As such, the government has voiced that it wants the deal to be in the best interests of locals.
The post Santos (ASX:STO) share price lower amid fresh revelations appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- 43% surge: ASX 200 shares that could rake it in this year
- 5 things to watch on the ASX 200 on Friday
- Oil Search (ASX:OSH) share price sliding amid fresh merger concerns
- Why ASX Energy shares are the worst performers today
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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