Investor Carl Icahn increased his investment stake in Chesapeake Energy to nearly 9%, according to documents filed Tuesday with the US Securities and Exchange Commission.
Icahn, who has called for profound changes in the management of the Oklahoma City-based oil and natural gas producer, and several affiliated entities spent almost $1 billion to acquire about 9.6 million shares of the company. This brings Icahn's ownership of Chesapeake to 8.98%, up from about 7.6% in September.
At the opening of trading on the New York Stock Exchange, shares of Chesapeake rose to $17.81/share, up about 2% from Monday's closing price of $17.47/share. Following the increase of his investment stake, Icahn remains Chesapeake's second-largest shareholder.
Icahn, who began investing in Chesapeake in May, has been highly critical of the company's management, especially that of founder and CEO Aubrey McClendon. In an SEC document filed in June, Icahn even hinted that the best option might be a sale of the company.
"While [I] have stated in the past that [I] believe Chesapeake to be greatly undervalued, [I] would not want Chesapeake's board or management to use this as an excuse to discourage would-be acquirers willing to pay a meaningful premium, which would reflect the long-term value of the company," Icahn said in the June filing.
That same month, Icahn and other large investors staged a revolt that forced the producer to reconstitute its board of directors, appointing five new independent directors to the reconstituted nine-member board. McClendon also was stripped of his chairman title, although he retained his CEO post.
Jim Gipson, a Chesapeake spokesman, declined to comment on the Icahn investment. A spokeswoman in Icahn's investment office, Icahn Associates, did not immediately return a call for comment.
