Shares of Chesapeake rose after a regulatory filing showed that billionaire investor Carl Icahn, the second-largest shareholder in Chesapeake, has raised his stake in the U.S. oil and gas company from 7.5% to 8.9%. Icahn and investor Mason Hawkins, who owns 13.5% of Chesapeake, took control of the company's nine-member board of directors in June in an effort to shore up its finances and deal with a governance crisis.
It was reported, citing SEC filings, that Icahn has spent roughly $951 million building his stake in Chesapeake. Reuters noted that the new board is contemplating strategies to reduce spending and debt, but nothing has been announced so far.
The company's third quarter earnings report showed debt rising to $16 billion and investors were disappointed when the company said some expected deal closings may be pushed into next year. Asset sales are needed to help close a 2012 funding shortfall that some analysts projected at $10 billion.
Chesapeake Energy (CHK : NYSE : US$17.60), Net Change: 0.13, % Change: 0.74%, Volume: 12,888,673