Earlier today, we told you about Chesapeake Energy’s ongoing financial woes: the company owes more than $13 billion, and has been hampered by probes into questionable loans taken out by CEO Aubrey McClendon.
But Chesapeake’s stock has been climbing in recent days, and two hours before the market’s close, its shares are up 20 cents. As the AP reports, that’s because investors are expecting changes to be announced soon:
NEW YORK — Chesapeake Energy shares are climbing in anticipation that prominent investors will force changes to the natural gas giant’s board of directors.
Investors are worried about growing debts at Chesapeake following a plunge in natural gas prices. They’re also frustrated with founder Aubrey McClendon, who has been at the center of several recent corporate governance controversies.
Late last week, billionaire investor Carl Icahn called for an overhaul of Chesapeake’s board. New York State Comptroller Thomas DiNapoli seconded the call on Tuesday. DiNapoli is the trustee of a retirement fund that owns Chesapeake shares.
Those calls are expected to be addressed at a shareholder meeting on June 8.