Carl Icahn Reduces Chesapeake Energy Stake

Billionaire activist investor Carl Icahn has sold off some of his stake in Chesapeake Energy Corp. (CHK), according to a securities filing.

Icahn disclosed a 5.8% stake in the Oklahoma City oil and gas producer in mid-December. In a filing made after market close Friday, Icahn reported that his stake in the company has been reduced to 4.15%.

He said he sold the shares on Thursday at a price of $38.41. In December, Icahn said in a filing that he spent about $945.9 million building his 5.8% stake, an average price of $24.50 a share.

Chesapeake's stock has risen 44.9% since Icahn's December disclosure, closing down 1.9% at $33.37 on Friday.

In that time the company, often criticized by analysts for spending too freely on oil and gas producing properties, announced a plan to reduce long-term debt by 25%--a goal that it has already achieved, in large part by last month selling its natural gas fields in Arkansas's Fayateville Shale formation to BHP Billiton Ltd. (BHP, BHP.AU) for $4.75 billion.

-By Ryan Dezember, Dow Jones Newswires; 713-560-6670; [e-mail]