Activist billionaire investor Carl Icahn
just reported that his funds have bought an aggregate amount of 50 million shares of Chesapeake Energy (CHK
), which is about 7.56% of total shares outstanding. Carl Icahn
started to buy the shares on April 19 at $18 a share and has added to the positions as the stock prices collapsed to around $14. His last purchase was on yesterday, May 24. His average cost is about $15.7 a share. Today Chesapeake stock closed at $15.99.
Chesapeake has attracted a lot of attention lately as investors questioned the interest and compensation of its CEO Aubrey McClendon. The company announced the day before yesterday
that it has implemented significant changes to the compensation of its CEO and the board of directors, which includes reducing the annual compensation of directors by 20% and reducing the CEO total compensation for 2011 by 15%. The company stock has lost close to 30% year to date. Since its peak in 2008, the stock has lost close to 80%. Continue Reading »