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Cheniere Energy Spikes After Carl Ichan Goes Long

August 7, 2015 3:08 pm
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Shares of Cheniere Energy, Inc. (NYSE: LNG) were up more than 5 percent on Friday, after Carl Icahn disclosed late Thursday a new activist position in the company.

According to the 13D filing, Icahn owns 19,353,530 shares of the company’s Common Stock, which represent 8.18 percent of the total shares outstanding. It should be noted, however, that this figure includes shares underlying forward contracts and call options — an aggregate of 2,665,530 call options that expire on November 15.

Related Link: Citi: Cheniere Energy LP, LLC Are Buys

The SEC document assures the investor acquired the stock in the belief that it was undervalued. Having said this, Icahn and his team intend to have discussions with Cheniere’s management and Board of Directors relating to the company’s “operations, capital expenditures, financings and executive compensation.” In addition, Icahn Capital LP might seek representation in the Board of Directors, if and when appropriate.

Large Stakes

This new position makes of Icahn the largest institutional investor of record in Cheniere, trailed by Andreas Halvorsen’s Viking Global Investors, which last disclosed (after a 56 percent increase in its bet) ownership of 15,447,556 shares of the company.

Other relevant shareholders are The Vanguard Group, which last declared holding 14,387,068 shares; Seth Klarman’s Baupost Group, with 13,807,230 shares worth more than $1 billion; and Stephen Mandel’s Lone Pine Capital, which last said it owned 8,018,486 shares.

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