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.
I'm already short... from $21.00
April 10, 2012... been smiling ever since!
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.
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.
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.
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.
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.