Activist investor Kimmeridge Energy Management Co. LLC has withdrawn its proposal to merge its natural gas-focused subsidiary with Eagle Ford Shale producer SilverBow Resources Inc. 

The New York-based investment firm, which holds a 12.9% stake in SilverBow, in March proposed a tie-up between Kimmeridge Texas Gas LLC (KTG) and the Eagle Ford producer along with a $500 million investment. 

In a letter to shareholders earlier this month, SilverBow’s board said it had reviewed the offer “and determined that the proposal undervalues SilverBow and would not be in the best interests of shareholders.”

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