Cramer Quick Take: Don't Buy Chesapeake on Takeover Rumors
NEW YORK (TheStreet) -- With the surprise announcement that Chesapeake Energy (CHK) founder and CEO Aubrey McClendon will be stepping down, should investors snap up shares on renewed hopes the company will be taken over? Jim Cramer told Lindsey Bell at TheStreet.com Wednesday that investors shouldn't jump the gun.
Cramer said McClendon's departure feels a bit like Vikram Pandit being forced out of Citigroup (C) , although unlike Citi, McClendon will provide a transition period through April 1. McClendon will be back, said Cramer, who has spoken with McClendon personally.
Cramer also noted the irony between McClendon's big bet on higher natural gas prices two years ago, which didn't pan out, and Kinder Morgan Energy Partners' (KMP) similar bet with their acquisition of Copano Energy (COP) , announced Wednesday.
Investors looking to play natural gas should look at Southwest Energy (SWN) , a stock Cramer owns for his charitable trust, Action Alerts PLUS, or EOG Resources (EOG) , he said, as Chesapeake will need to continue to sell assets until gas prices improve.
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-- Written by Scott Rutt in Washington.
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