Reports: NYC Corporate Raider Carl Icahn May Re-Invest In Chesapeake

There are reports that a one-time corporate raider may be in the process of acquiring a large stake in Chesapeake Energy.

Carl Icahn isn't commenting, and there have been no regulatory filings yet to confirm anything, but published reports, including a Wall Street Journal story, suggest Icahn, the billionaire investor, is re-investing heavily in Chesapeake Energy.

In a conference call Monday morning to discuss Chesapeake's plan for improving cash flow, CEO Aubrey McClendon said he wouldn't be surprised if Icahn bought in, just like he did in late 2010.

WEB EXTRA: Chesapeake Energy Timeline

It was, in fact, December 2010, when Icahn made his first run at Chesapeake, buying up 38.6 million shares or about 6 percent of Chesapeake stock when it was priced around $23. Icahn started selling his shares three months later, after the stock had jumped to $34, for a very nice profit.

Icahn's M-O is simple, buy into companies that are undervalued by the market, and, in terms of its assets, Chesapeake is clearly undervalued right now, perhaps by as much as $50 billion. The question is if Icahn does jump in, will he actively agitate for changes in management? or does he believe McClendon and the Board are already doing the right things?

Chesapeake shares were up 5 percent on Monday, closing at 15-52.