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Carl Icahn Built a 5.8% Stake in Chesapeake Energy Corp.

January 20, 2011 | About:

A little over two years ago, Chairman and CEO of Chesapeake Energy Corp. Aubrey McClendon made news for having to liquidate his 33.4 million in his company due to a margin call for $16.52 per share.

Shortly after that, McClendon was shortly thereafter awarded a controversial one-off $75,000,000.00 'Well Cost Incentive Award' by the board of directors.

If Carl Icahn was around in the board of directors, such package may not be entertained.

Icahn is getting close to the point. In a 13D filing last month, Icahn disclosed that through multiple investment entities, he now controls 38.6 million shares of CHK or 5.8%.

Icahn is an active investor. He tends to build a large stakes in companies in which he sees corporate governance or strategy changes could unlock the value of the targeted company.

He has been in recent years seen forcing changes in Times Warner, Yahoo!, and Motorola, each with considerable success.

Watch the CNBC video on the subject:

The following table lists Icahn’s recent purchases as disclosed in the 13D:

EntityDateSharesPrice ($)
High River12/7/2010280,89822.72
High River12/8/201094,05622.75
High River12/9/2010105,32022.75
High River12/10/2010160,10422.87
High River12/13/2010297,13622.89
High River12/14/2010121,88522.88
Icahn Partners12/7/2010447,46422.72
Icahn Partners12/8/2010143,60922.75
Icahn Partners12/9/2010160,80522.75
Icahn Partners12/10/2010244,45122.87
Icahn Partners12/13/2010453,67722.89
Icahn Partners12/14/2010186,09622.88
Icahn Master12/7/2010494,52722.72
Icahn Master12/8/2010162,65522.75
Icahn Master12/9/2010182,13422.75
Icahn Master12/10/2010276,87522.87
Icahn Master12/13/2010513,84522.89
Icahn Master12/14/2010210,78022.88
Icahn Master II12/7/2010114,70322.72
Icahn Master II12/8/201047,05622.75
Icahn Master II12/9/201052,68922.75
Icahn Master II12/10/201080,09722.87
Icahn Master II12/13/2010148,65322.89
Icahn Master II12/14/201060,97722.88
Icahn Master III12/7/201066,89822.72
Icahn Master III12/8/201022,90622.75
Icahn Master III12/9/201025,65222.75
Icahn Master III12/10/201038,99422.87
Icahn Master III12/13/201072,36822.89
Icahn Master III12/14/201029,68622.88

Rating: 3.0/5 (3 votes)


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GuruFocus has detected 4 Warning Signs with Chesapeake Energy Corp $CHK.
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