Chesapeake Caves to Pressure, Will Replace Half its Board

Chesapeake Energy, in a bid to keep the company from being sold, has caved to demands from its two largest shareholders to replace half of its board of directors. Investment firm Southeastern Asset Management, which holds 13.6% of Chesapeake stock, and corporate raider Carl Ichan, who didn’t own any Chesapeake stock a month ago but now owns 7.6%, have been very vocally challenging the company and calling for changes at the board level. Raider Carl will be one of those new board members—either him or someone he designates. The other three new board members will be appointed by Southeastern.

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