Corporate Raider Carl Icahn Strikes Again, Achieves 7.56% Stake in Chesapeake

Today, Carl Icahn reported a 7.56% stake in natural gas and oil company Chesapeake Energy

, explaining in a letter to Chesapeake that the company's current corporate governance is flawed. He says splitting the roles of CEO and Chairman was a positive step for Chesapeake, but that he thinks Chesapeake should have shareholder representation on the board. Icahn suggests that four board members be replaced, two selected by him and two selected by another significant shareholder, such as Southeastern Asset Management. He also voices a need for shareholder involvement in the search for a chairman. Icahn writes, "Having the current board select a new chairman without shareholder approval and without allowing for shareholder representation is akin to asking the fox, who has plundered the hen house, to choose another fox to assist it in standing guard over the remaining hens." This news occurred after corporate governance concerns surrounding CEO Aubrey McClendon have contributed to an approximate 29% decline in Chesapeake's stock price year to date. Icahn writes that he believes Chesapeake has valuable assets and that its low stock price is due to "an ever changing business strategy, enormous capital funding gap, poor governance, and unchecked risk taking." Shares of Chesapeake were trading around 1.5% higher during after hours.