Chesapeake To Replace Four Directors In Nod To Icahn

Chesapeake Energy Corp. plans to replace four of its existing board members after extensive talks with its two biggest shareholders, one of which is activist investor Carl Icahn.

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Icahn recently acquired a 7.6 percent stake in Chesapeake. He said the board needed to be revamped because of the company's huge debt load and recent controversies over CEO Aubrey McClendon's personal business dealings.

The nation's second-largest natural gas producer said Monday Icahn or a person he chooses will take one seat on the board. Chesapeake's biggest stockholder, Southeastern Asset Management, will select three board members.

Chesapeake is seeking a new board chairman after agreeing to strip that title from McClendon. The selection will be made by June 22, and must be approved by Icahn and Southeastern Asset.