Icahn buys more Chesapeake

Article Excerpt

CHESAPEAKE ENERGY $27.30 (New York symbol CHK; TSINetwork Rating: Extra Risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 665.5 million; Market cap: $18.1 billion; Dividend yield: 1.3%) is up 9% since August 19, when activist investor Carl Icahn revealed that he had increased his stake in the company to 9.98% from 8.98%. Icahn has a long history of pushing companies to make changes that have increased shareholder value. He first acquired a stake in Chesapeake in May 2012. Since then, he has successfully pressured the company to replace four of its eight board members with his nominees. Most recently, four of Chesapeake’s top executives left as part of an ongoing reorganization. That’s in addition to co-founder and former CEO Aubrey McClendon, who departed in April, and two senior vicepresidents who left in May. The company is selling assets to pay down debt and focus on properties with strong potential. In addition, Icahn continues to push for cost-cutting measures and a more conservative approach…