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Carl Icahn

Famed investor Carl Icahn feeling oil pain

Kaja Whitehouse
USA TODAY

NEW YORK -- Carl Ichan, whose reputation as a successful businessman made him a talking point of Donald Trump's presidential bid, is taking a beating in his energy investments.

Carl Icahn looks at charts on a projection screen during a media conference at the St. Regis on February 7, 2006 in New York City.

Shares of Oklahoma City-based oil and gas producer Chesapeake Energy Corporation (CHK) plunged by 50% Monday on rumors that it could seek to file for bankruptcy protection.

Chesapeake has since denied the rumors, but the stock continued to trade down by 35% in mid-day trading. Over the last 12 months, Chespeake's shares are down 90% — to $2 a share from $20 a share.

Icahn's publicly traded investment company, Icahn Enterprises, owns 11% of Chesapeake's outstanding shares, according to regulatory filings.

The 80-year-old billionaire, who recently won a bidding war for iconic auto repair company Pep Boys — Manny, Moe & Jack, didn't immediately return a request for comment.

Pep Boys confirms Icahn victorious in takeover battle

Energy company stocks are suffering broadly on fears that an economic slowdown in China could spread and reduce demand for oil, natural gas and other fuel sources.

In addition to Chesapeake, Ichan owns sizable investments in Cheniere Energy (LNG) and CVR Energy (CVI), according to regulatory filings. Both companies are suffering on concerns of sagging demand, which has pushed oil prices to below $30 a barrel this year — the lowest levels seen since 2003.

Shares of Cheniere Energy (LNG) are down 68% over the past 12 months to $23.07 a share. Shares of CVR Energy, meanwhile, are down 31% this year to $27.93.

"Chesapeake currently has no plans to pursue bankruptcy and is aggressively seeking to maximize value for all shareholders," the company said in a statement Monday. The rumors started on a report that Chesapeake had started working with restructuring law firm Kirkland & Ellis.

On Monday, Chesapeake said Kirkland has served as one of Chesapeake's counsel since 2010 "and continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange."

Follow USA TODAY reporter Kaja Whitehouse on Twitter: @kajawhitehouse

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