|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Carl Icahn Still Bullish on Chesapeake
Posted by: matsandalex (IP Logged)
Date: January 30, 2013 10:46AM
It appears that Carl Icahn has helped to shuffle the board of another company. Yesterday, it was revealed that Chief Executive Officer Aubrey McClendon has agreed to retire on April 1.
However, it is not clear whether Icahn used his activist tactics to remove the beleaguered executive.
Icahn in a statement released yesterday, expressed some flattering words for the outgoing CEO.
“Aubrey has every right to be proud of the company he has built, the world class team of people at Chesapeake and the collection of assets he has assembled, which in my opinion, are the best portfolio of energy assets in the country. While it is known that some of these assets will be sold by the company in due course, I do not believe that this will in any way effect the ultimate realization of Chesapeake’s potential.
“I am confident that history will prove that Aubrey has been correct about the value of natural gas in general and the value of Chesapeake in particular.”
McClendon was previously the subject of an SEC investigation of a personal loan given by the Chesapeake board.
Under the controversial plan McClendon was allowed to buy a stake of each of the wells that Chesapeake drills with money from a billion-dollar loan McClendon received from the company. In the program, called the Founder Well Participation Program, McClendon was allowed to buy a 2.5% stake in each of the company’s thousands of wells.
As of Nov. 19, 2012, Icahn Associates owned 59,698,689 shares, or an 8.98% stake in Chesapeake, according to 13F data.
The stock is up more than 6% on the news of the CEO's departure.
Guru Discussed: Carl Icahn: Current Portfolio, Stock Picks
Stocks Discussed: CHK,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.