Billionaire US investor and corporate raider Carl Icahn recently increased his stake in Chesapeake Energy to 10 per cent. Dealers on both sides of the Atlantic are convinced that the man who began his career as a Wall Street stockbroker in 1961 is confident that the second largest natural gas producer in the US, which is heavily into fracking, will soon attract a foreign cash bid in the region of $40 a share.
Dealers heard that BP (1.85p easier at 443.9p) and Royal Dutch Shell (20.5p off at 2039.5p) could both be running the slide-rule over the Oklahoma-based company whose shares yesterday touched a 52-week peak of $27.67.
Read the entire article here.Fracking is the process of drilling down into the earth before a high pressure water mixture is directed at the rock to release the gas inside. For Chesapeake, the primary profit in fracking comes not from selling the gas itself, but from buying and flipping the land that contains the gas.
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