girlfriend, Chesapeake is indeed an extremely likely takeover target. There are 3 companies that would love to grab it. Exxon is at the top of the list. They recently issued bonds worth $12 billion, which looks like they are about to go on a cash buying spree. Chesapeake would be their #1 target. Moreover, if Exxon funded the acquisition with cash, CHK liquidity issue would be wiped out resulting in a huge potential profit going forward, more then enough to pay off the bond holders. In other words, they could swing the deal and make a killing.
There was also an opportunity for Exxon to acquire Chesapeake by acquiring its debt. I think this is what put the pressure on Carl Icahn and other major share holders to authorize more shares and pay off some of the disgruntled bond holders. This makes much harder for a hostile takeover.
The only question is whether regulators would allow Exxon to control so much gas productions. Whatever happens, Exxon is certainly on the prowl. This is why they have cut the Capex--they want to buy production, not explore for it.
Anadarko is another possible bidder along with GE Oil and Gas, which would also love to buy production.
And, let's not forget this company has 8 million acres of land that covers their debt easily and provides them with additional value. Forget about natural gas production... look at the deal as a REIT and you immediately see much higher value. Then take into account that a lot of this real estate also has proven natural gas reserves that could bring substantial more value prices.
This is also a great deal for Chevron to be more competitive with Exxon.
Having Carl Icahn on their board helps a hell of a lot. In my opinion, Carl is looking for the right take-over deal. That his usual style anyway!
Either way, $10 price target by January 2017 is extremely likely.
