Chesapeake (NYSE:CHK) will attempt to hold something called an annual meeting on June 8, 2012. Normally annual meetings are very close to Kabuki theater. Chesapeake would love to experience a Kabuki theater moment. Kabuki theater is highly predictable and without surprises, or so I’m told. Carl Icahn has walked onto the stage with an activist agenda wanting to replace four directors. CHK is responded they want to find a chairman first. Not sure who would want the job to be very frank about it. Snakes everywhere and declining energy prices.
The entire situation has been dysfunctional so expect the dysfunctional. Here are a few possible problems that may arise.
- Board may adjourn claiming extraordinary situation.
- Activists may seek to postpone the meeting until only God knows when.
- Enough directors resign seeking to flee continued personal responsibility.
- Courts may rule annual meeting should be adjourned.
- Annual meeting may actually be held and no one will be happy with outcomes.
In any event Friday June 8, 2012. Bring your heavy artillery.
George Gutowski writes from a caveat emptor perspective.
- Chesapeake Energy Update and Correction. What Does Step Down really Mean! Investors Still Screwed $CHK (financialskeptic.wordpress.com)
- Shareholders want to postpone Chesapeake meeting (newsok.com)