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 (jhargett@sir-inc.com) 1/26/2009 1:15 PM Speculation is swirling around Chesapeake Energy (CHK: sentiment, chart, options) and British oil ...

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1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 13, 2012 at 2:08am
Permalink Reply by Billy Park Whyde on May 13, 2012 at 2:54am

Keith I doubt that it will happen. I think right now talk and rumor is taking place to prep up for the election.  Not knowing what Obuma will do if he was reelected  and his ever demanding quest foo more taxes I think investors might be in a safe haven mode or even afraid and would like to off load if they could to invest in lower tax investments , my guess only of course. 

Permalink Reply by paleface on May 13, 2012 at 3:35am

 This is when the big companys buy when they smell blood thats when they get the best deal,like Shell did with East Resources.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on May 13, 2012 at 3:46am

Who would have ever guessed K-Mart would buy Sears..............?

It's Dog Eat Dog.

Permalink Reply by Chartist on May 13, 2012 at 7:39am

I absolutely believe CHK will be bought out....The only thing now is to set the price.  McClendon has lost the trust of wall street....As lessors, it is unlikely to affect you.  But this company is wrecked.  The question is, is the NPV of all their assets worth more than the debt?

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 13, 2012 at 9:35am
Yea your probably right...the $3 billion that Goldman Sachs and The Jefferies Group loaned Chesapeake is probably just walking around money. Goldman Sachs IS Wallstreet and if they had any doubt that Chesapeake couldn't recover from this they would have sent them on down the road to Merrill Lynch.
Permalink Reply by Bluflame on May 14, 2012 at 12:40am

Keith,

   Considering the huge disparity in world natural gas prices vs here in the US, a BP acquisition of CHK makes some sense. Secondly, huge on-shore production in a stable country would be attractive to BP. BP recently made a big investment in the northern segment of the Utica Shale, so they are knowledgeable about the area. BP already has a huge presence in the US market, including gasoline retail operations.

  Conversely, wading through the myriad of complex deals that CHK has wrought would be a real challenge. Maybe CHK will announce something in this morning's press conference. Too bad CHK has so much excess baggage. 

BluFlame

015334grltd9mPermalink Reply by 015334grltd9m on May 14, 2012 at 12:56am

This is basic business, like I was taught and shouted out many times here, the secret to business is:  how you buy and not how you sell.

Even if it is not BP, if a move can be put on CHK by a stronger entity, and Creditor fatigue is observed, Shell, Hess, Total, CNOOC or any other stronger company will attack.

This is not a problem, for anyone, including CHK, it is the normal action of business.  We always knew here, that CHK could never develop all the land they tied up, they did their job, a good one at that, it is just time for the production companies to start coming in en masse.

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 14, 2012 at 1:53am
I was always taught that "attention to detail" is the most critical aspect of business dealings....did anyone notice the date of this post by Keith...January 26, 2009.
Permalink Reply by Bluflame on May 14, 2012 at 2:16am

Good catch BGJ,

   I sure missed it. Probably a valid discussion regardless! The same players are out there and CHK is certainly a distressed company in somewhat similar circumstances as 2009.

BluFlame

Permalink Reply by Area Man on May 14, 2012 at 4:18am

In the oilpatch we call this...

THREAD ZOMBIE! KILL IT!!!

Permalink Reply by Bluflame on May 14, 2012 at 8:04am

   Carl Icahn, a legendary wall street raider, is reportedly accumulating CHK stock for a run at the company. Apparantly, this will be his second bite at the CHK apple. He did the same thing in early 2009 when CHK was floundering from Mr.McClendon's margin calls. Icahn supposedly banked a cool $500 million that time by forcing asset sales.

   The vultures are circling!

BluFlame

  

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