EmailChesapeake Energy (CHK $15.93 +0.34) announced that following extensive discussions with its two largest shareholders, Southeastern Asset Management and Carl Icahn and his affiliated entities, who own, respectively, ~13.6% and 7.6% of the co's common stock, co has agreed to a plan to reconstitute its Board of Directors by adding four new independent directors to replace four existing independent directors who will resign from the Board upon the appointment of the new directors.
Three of the new independent directors will be proposed by Southeastern and the fourth independent director will be Icahn or a person designated by Icahn, with Icahn making that determination prior to the reconstitution of the Board. With regard to this, Icahn states: "We appreciate the Board's willingness to listen to shareholders and to respond appropriately. Under Aubrey's leadership, Chesapeake has assembled great assets and I am confident I can help the Company create significant shareholder value from these assets. We enjoyed a very good relationship when I acquired almost 6% of the Company's stock in late 2010 and I look forward to a similarly constructive relationship now."
