Icahn on Chesapeake: "I Would Be Against Selling This Stock"

From Seeking Alpha:
Carl Icahn, during an interview given to CNBC yesterday (July 3, 2012), said that the natural gas giant, Chesapeake Energy Corp (CHK), is a "very undervalued company". 
Icahn has a Chief Executive Officer on the prices of natural gas, and says, "I think natural gas, in the next few years, will go quite a bit higher, and Chesapeake will be there to take advantage of it." 
He further stated, "I would not sell Chesapeake. I would be against selling this stock." 
While speaking about the Chief Executive Officer (CEO) of Chesapeake, he said, "Aubrey (McClendon) is a very bright guy and he's put a lot of great assets together." 
When asked about the funding gap faced by the company, he said, "I think they'll definitely meet [their cash gap] if they're able to cut costs and sell their assets." 
Icahn sees an interesting similarity between Chesapeake's current situation and that of ImClone Systems (IMCL), in facing a corporate governance failure, but whose assets were still prized. Icahn took over ImClone in 2006 and sold it to Eli Lilly (LLY) two years later. 
With regards to the changes in the board and Chief Executive Officer, he said, "There's a new board, I put on a director. I can tell you, the shareholders control the company now."
Read the rest of this article here.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

The Second Largest Oil and Gas Merger - Cabot and Cimarex

Do You Know The History of Fracking?