Bloomberg reports Carl Icahn has repurchased a major stake in Chesapeake Energy.
Citing an anonymous source “with knowledge of the matter”, Bloomberg’s Zachary R. Mider and Jim Polson write that the billionaire “corporate raider” and founder of Icahn Capital Management has taken at least a 4 per cent stake in the embattled oil and natural gas developer.
Icahn previously owned a 5.8 per cent stake in the Oklahoma City-based company, reported in December 2010.
Upon that announcement, Chesapeake promised to sell assets and reduce its debt, according to The Oklahoman’s Adam Wilmoth. The stock price peaked at $35.61 in February 2011. Icahn sold out most of his stakes a few weeks later.
Speculation had been swirling for weeks that Ichan would jump back into the company, especially as its share prices continued to fall. Shares have fallen more than 50 per cent since mid-March, when the first report of CEO Aubrey McClendon’s unusual transactions emerged.
Shares were up 1.8 per cent on today’s announcement.
“He made over $500 million and called to thank me when it was over,” McClendon said two weeks ago of Icahn’s initial dalliance. “If he comes in (again), I’m pretty confident he’ll make a lot of money.”