Activist investor Carl Icahn takes 8.2% stake in Cheniere

Billionaire activist investor Carl Icahn is taking an 8.2% stake in Cheniere Energy, disclosing ownership of 19.4 million shares of the liquefied natural gas company in a regulatory filing Thursday.

In the filing, Icahn said the company’s shares were undervalued and that, if needed, he would seek a seat on the company’s board. Talks between Icahn and Cheniere management regarding capital spending, operations, financing and compensation are expected.

Cheniere, a Houston, TX-based energy company primarily engaged in LNG-related businesses, owns and operates the Sabine Pass LNG receiving terminal and Creole Trail Pipeline located in Louisiana through its general partner ownership interest in and management agreements with Cheniere Energy Partners LP (NYSE MKT: CQP) and its partial ownership interest in Cheniere Energy Partners Holdings LLC (NYSE MKT: CQH).

Icahn is a long-time activist investor. Perhaps his most notable action in the oil and gas arena is his involvement in the eventual resignation of Chesapeake Energy’s former chairman and CEO, Aubrey McClendon, in April 2013. Pressure from Icahn for leadership changes and stronger board oversight culminated in the installation of an almost entirely new board of directors, noted EnerCom managing director James Constas in an April 2014 article for OGFJ.

Shares of Cheniere Energy were up 5.77% Friday morning to $68.55.

 

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