News Summary: Icahn buys Chesapeake Energy stake

News Summary: Icahn buys stake in Chesapeake Energy, says 4 directors should be replaced

Associated Press

THE BUY: Billionaire investor Carl Icahn is buying 50.1 million shares of natural gas and oil producer Chesapeake Energy Corp., making him one Chesapeake's biggest shareholders. Icahn wants to replace four company directors with nominees backed by himself and at least one other top shareholder, and he says investors need a say in the company's choice of a new chairman.

THE COST: Icahn is spending about $785.3 million for a 7.6-percent stake in Chesapeake.

TROUBLE: Chesapeake is struggling with lower gas prices and questions about compensation for its directors, including CEO Aubrey McClendon, who gave up the chairmanship May 1.

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