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 15, 2012 at 9:19am
Yea...whatever. You go short and I'll go long and we'll see who has the last laugh!
Jim ShoosPermalink Reply by Jim Shoos on May 15, 2012 at 9:38am

I'm already short... from $21.00 

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

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 15, 2012 at 9:54am
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.
Jim ShoosPermalink Reply by Jim Shoos on May 15, 2012 at 11:24am

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 10:53am

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

015334grltd9mPermalink Reply by 015334grltd9m on May 15, 2012 at 10:29am

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.

Jim ShoosPermalink Reply by Jim Shoos on May 15, 2012 at 11:26am

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. 

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 15, 2012 at 11:30am
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.
1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 15, 2012 at 11:37am
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 11:56am

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.

Permalink Reply by Betty on May 15, 2012 at 12:10pm

what is your source?  I saw that the loan was upped from 3 billion to 4 -- but nothing about $12 billion for an orderly sale

Permalink Reply by Chartist on May 15, 2012 at 12:17pm

it got tripled...it's all over the net....try Reuters or Bloomberg.

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