Chesapeake Energy being bought out?

There are rumors of BP making a bid on Chesapeake and a Louisiana News Station reported Exxon's buying out of Chk. Any thoughts?

BP jumps; traders cite talk of bid for Chesapeake
Reuters - 2 hours ago
LONDON, Jan 26 (Reuters) - Shares in British energy group BP (BP.L) rose more than 3 percent on Monday as traders cited market talk that the company was ...
BP moves higher on market talk of possible Chesapeake bid
guardian.co.uk, UK - 3 hours ago
A buoyant stock market tends to bring out the rumours, and this afternoon is no exception. BP is 17.5p higher at 505p after traders heard tell it might be ...
Options Update: Chesapeake Energy Calls Popular on BP Buyout ...
Schaeffers Research, OH - 25 minutes ago
by Joseph Hargett ([email protected]) 1/26/2009 1:15 PM Speculation is swirling around Chesapeake Energy (CHK: sentiment, chart, options) and British oil ...

Tags: buyout, chesapeake

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Replies to This Discussion

Permalink Reply by Black Gold Junkie on May 15, 2012 at 4:04pm
Bluflame, my comment was towards Jim Shoos prior 2 comments.
Permalink Reply by Jim Shoos on May 15, 2012 at 4:10pm

Woooo-hoooooo Carl Icahn... he lost millions on Motorola, lost his battle with Clorox, Lions Gate Entertainment, Forest Labs, Dynegy. 

He did OK when he was younger, but he is now in his 80's and his dementia leads him to do stupid things.

Permalink Reply by Black Gold Junkie on May 15, 2012 at 4:19pm
Yea...whatever. You go short and I'll go long and we'll see who has the last laugh!
Permalink Reply by Jim Shoos on May 15, 2012 at 4:38pm

I'm already short... from $21.00 

April 10, 2012... been smiling ever since!

Permalink Reply by Black Gold Junkie on May 15, 2012 at 4:54pm
I hope you can trade in the extended hours....I wouldn't want you to get short squeezed some evening when oil jumps 10% and all the oil companies follow suite. I wouldn't count on your sell stop to save you...especially with a gap up stock like Chesapeake.
Permalink Reply by Jim Shoos on May 15, 2012 at 6:24pm

Chesapeake is an "oil company"???  News to me, since 95% of their production is natural gas.  Oil price increases aren't going to help CHK any. 

Permalink Reply by Bluflame on May 15, 2012 at 5:53pm

Jim,

  Even Mr. McClendon concedes that Icahn made $500MM in 2009 accumulating CHK stock and forcing asset sales. A second trip to the well.....? Icahn hasn't yet announced he's a "player" in this drama, so maybe he's developed cold feet.

BluFlame

Permalink Reply by Ron Eiselstein on May 15, 2012 at 5:29pm

If I were a raider, Icahn, pickens, Jacobs, they were all my studies in the eighties; I would push CHK closer to bankruptcy, then reorganize.  What I have learned from the old timers, is what I have used all my business life, find the hidden assets.

Permalink Reply by Jim Shoos on May 15, 2012 at 6:26pm

Reorganization is great when the bulk of your debt isn't secured...  all of CHK's is secured, so it would be a liquidation as opposed to a reorganization since their asset values at fire sale prices won't cover their debt. 

Permalink Reply by Black Gold Junkie on May 15, 2012 at 6:30pm
That's why private equity will come in and clean house and take them public again in five years...and walk away with billions none the less.
Permalink Reply by Black Gold Junkie on May 15, 2012 at 6:37pm
Yea...your right...oil and gas companies aren't correlated in anyway. Keep a keen eye on that buy stop loss of yours.
Permalink Reply by Chartist on May 15, 2012 at 6:56pm

CHK is now being managed as a liquidation...I read that Goldman Sachs is backstopping CHK's debt to the tune of $12 billion to allow for an orderly sale....Insurance on outstanding debt has come down to $770K per $10MM.....Aubrey expanded too fast.....He flew too high, he got too close to the sun, as his wings melted off....Greek mythology I believe.

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