2011-01-14-2010-12-20-2010-12-20

Bought 22MM shares in company, increasing stake to 5.9%.

Billionaire Carl Icahn has more than doubled his position in Oklahoma City-based Chesapeake Energy Corp. (NYSE: CHK) to 5.9%, making him the second-largest shareholder behind Memphis, Tenn.-based Southeastern Asset Management Inc., according to a report by Forbes.

Icahn has increased his stake from 16.6 million Chesapeake shares to 38.6 million at a price between $22.72 and $22.89 per share, according to the report. The move, valued at some $500 million, led to a 7% spike in Chesapeake stock at the onset of a relatively light trading session ahead of the holiday weekend.

As of early Dec. 20, Chesapeake stock was trading higher at $24.92 per share.

Recently, Icahn's Icahn Enterprises LP (NYSE: IEP) agreed to acquire Houston-based electric utility company Dynegy (NYSE: DYN) for $5.50 per share ($665 million) in cash for a total of $4.7 billion, including the assumption of debt. Dynegy currently has approximately $3.95 billion of outstanding debt, net of cash.

Impacted by the softening gas pricing environment, Chesapeake stock has declined more than 10% this year. Meanwhile, the company has begun to unload certain assets to help transition it to a more oil-weighted mix.

Chesapeake sold approximately $3.6 billion in assets in 2010, Forbes reports.