The Wall Street Journal’s Ryan Dezember and Daniel Gilbert report legendary activist investor Carl Icahn will soon disclose he has purchased a significant stake in shares of Chesapeake Energy.
Icahn is known for swooping in on companies whose share prices have reached “bargain” levels and forcing changes that cause them to climb back up.
CHK shares have fallen 35 per cent since January.
The move would be Icahn’s second dance with the Oklahoma City-based firm, notes NewsOK’s Adam Wilmoth. In Dec. 2010, Icahn took a 5.8 per cent stake in the firm. Soon after, management began selling assets and promised to reduce debt. The stock price peaked at $35.61 in February 2011.
On Friday, they closed below $15 per share, though in pre-market trading today shares had climbed above $16 on the news.
Also late Friday, Chesapeake disclosed it had received a $3 billion unsecured loan from Goldman Sachs and Jefferies.
Business Insider Emails & Alerts
Site highlights each day to your inbox.