This Month's CHK Rumor: BP to make bid for Chesapeake?

[OKCMallen]

BP jumps; traders cite talk of bid for Chesapeake | News | Breaking City News | Reuters

LONDON, Jan 26 (Reuters) - Shares in British energy group BP (BP.L) rose more than 3 percent on Monday as traders cited market talk that the company was planning a bid for U.S.-listed group Chesapeake Energy (CHK.N).

"We never comment on market rumours," said a BP spokesman, pointing out that Chesapeake was already BP's partner.

At 1506 GMT, BP shares were up 3.4 percent at 504 pence, while Chesapeake was 5.5 percent higher at $15.71.

(Additional reporting by Victoria Bryan)

(Reporting by Sitaraman Shankar and Atul Prakash)

[ssandedoc]

I wonder what this would mean for Oklahoma City?

[adaniel]

I'll believe it when I see it. This is probably the 6th or 7th incident of this rumor in the past 2 years.

[soonerguru]

I don't think this would be good for OKC. We would have, however, a ready-built college campus in a once thriving commercial district for sale.

[shane453]

^^ once-thriving? or still-thriving? or thriving even better than before?

[bretthexum]

This would be bad news for OKC. There would be a ton of overlap in corporate functions. Like the previous poster said... there's been rumors forever. I don't think it's a far fetched scenario though. It could happen.

[dismayed]

This has been rumored for some time. I just checked and CHK's 4Q earnings statement is not out yet. Their 3Q 10K filings, in the comments, seemed to suggest they were anticipating a very bad 2009. I think they are so exposed a buy-out is inevitable.

And it really pisses me off. That company has done nothing but destroy the charm and character of one of the most charming restaraunt and business districts in town, replacing it with their corporate-sans-college presence. Five years from now it is going to be a failed corporate wasteland of empty buildings, with all the jobs gobbled up by BP and moved to Houston, and all we'll have to show for it is a "Split-T Sonic."

Here's a note to our city counselors... the next time you buy into the "we'll build up a corporate presence, and then we'll improve your city," how about asking for more of those improvements up-front. You never know when the company won't be around to finish what they promised.

Did we learn nothing from the IM Pei fiasco of destroying buildings and never getting around to constructing the improved stuff?

[bluedogok]

The Split-T failed well before Chesapeake started buying up everything that quadrant of the city. I remember when they were still a small owner in Three Chopt Square.

The Journal Record - PRODUCTION FIRM BUYS 6,000-SQUARE-FOOT OFFICE AT THREE CHOPT SQUARE
July 8, 1988

Chesapeake Production Co. will move its offices to Three Chopt Square, 6104 N. Western Ave., having purchased a 6,000-square-foot building in the office complex.

The steel frame unit was sold by the W.R. Johnston Co. The purchase price was not disclosed.

Aubrey K. McClendon, president of Chesapeake, an independent oil and gas company, said the two-story building's interior and ...

[dismayed]

I know. I used poetic license. Perhaps I should have said farewell to Loredo's, Pearl's, etc. that all used to be in that area instead.

[zuluwarrior0760]

Chesapeake has been a good corporate citizen and if they get
bought, then that's terrible for OKC.

I am however tired of people waxing on and on poetically
about the good old days with quaint restaurant row on 63rd.

Laredos was a bonafide dump. It was poorly maintained, and it showed.
Pearls was OK, but it certainly was no architectural masterpiece....
It was a tightly cramped leanto with bizarre lack of parking. There
was nothing about that structure that spoke to a certain "period" in
OKC......matter of fact, wasn't it constructed in the 80s??? The restrooms
weren't even ADA compliant....!

Also, why don't the naysayers ever mention the Wendy's with weeds
consistently growing up through the sidewalks.......or the Subway
that will be gone FOREVER!!!

I'd take Pearl's graveside over Pearls 63rd side any day of the week.
and if the new Laredo's ever opens, it will trounce the daylights
out of the old one in every regard (I don't think it will ever see the light
of day though)

Point is, whatever is in that area of the city, these particular restaurants
won't be missed any more than a Braum's might be missed upon
it's demolition.......

[metro]

well said zulu

[hipsterdoofus]

For all the proponents of the Devon tower - think what it would be like if they were bought halfway through with their skyscraper...

[OKCMallen]

This has been rumored for some time. I just checked and CHK's 4Q earnings statement is not out yet. Their 3Q 10K filings, in the comments, seemed to suggest they were anticipating a very bad 2009. I think they are so exposed a buy-out is inevitable.

And it really pisses me off. That company has done nothing but destroy the charm and character of one of the most charming restaraunt and business districts in town, replacing it with their corporate-sans-college presence. Five years from now it is going to be a failed corporate wasteland of empty buildings, with all the jobs gobbled up by BP and moved to Houston, and all we'll have to show for it is a "Split-T Sonic."

Here's a note to our city counselors... the next time you buy into the "we'll build up a corporate presence, and then we'll improve your city," how about asking for more of those improvements up-front. You never know when the company won't be around to finish what they promised.

Did we learn nothing from the IM Pei fiasco of destroying buildings and never getting around to constructing the improved stuff?

CHK has done more for OKC in the past 4 years than ANY place in that area had done for OKC in the previous 100. Get some perspective. Besides, both sides say there's no buyout imminent.

[Midtowner]

Pearl's graveside

That's hilarious. You win the thread.

[betts]

While I'm not sure I think the replacements are as charming as the originals (Pearls and Laredos), Chesapeake does have an attractive campus, and Aubrey is building Classen Curve, which could be a very cool thing, especially if he attracts retail stores we don't have in OKC yet, or if some new concept restaurants are added. I don't think it's a bad thing, necessarily, and agree it would be terrible for OKC if Chesapeake were bought out. I do wish Aubrey had been more careful with his money, as the success of his company affects far more than his employees.

[soonerj]

Not to turn this thread too much away from the topic at hand, but I must say the old Pearl's location had character to it. I can't say I feel the same way about Pearl's Graveside. It seems more stuffy than the former. I always told myself that at least we still had the southside Pearl's that quasi-resembled the 63rd location, but alas, now it is gone, too.

I'd hate to see Chesapeake leave 63rd/Western, but I agree.... If anything, it would be a perfect college campus.

[OKCMallen]

I can't believe we're actually comparing a couple of replaceable restaurant to the billion+ dollar impact CHK has on OKC and OK at large. Sure, people loved the old Pearl's...but it's a complete no-brainer which is preferable. I don't see Pearl's helping to bring in NBA teams or building boathouses or paying professors to teach at OSSM or employing thousands of OKlahomans.

[progressiveboy]

I can't believe we're actually comparing a couple of replaceable restaurant to the billion+ dollar impact CHK has on OKC and OK at large. Sure, people loved the old Pearl's...but it's a complete no-brainer which is preferable. I don't see Pearl's helping to bring in NBA teams or building boathouses or paying professors to teach at OSSM or employing thousands of OKlahomans.

I agree totally! OKC should be grateful and happy that CHK has taken the initiative and pride to beautify and build their campus and to acquire the surrounding buildings. It employees thousands and brings wealth to OKC. The old Pearls was rather dated and dirty as to the new one. The new Pearl's is much more attractive in appearance. The other existing buildings he acquired and had bulldozed had no architecturally redeeming values, just very plan looking.

[Mr. T in OKC]

I can't believe we're actually comparing a couple of replaceable restaurant to the billion+ dollar impact CHK has on OKC and OK at large. Sure, people loved the old Pearl's...but it's a complete no-brainer which is preferable. I don't see Pearl's helping to bring in NBA teams or building boathouses or paying professors to teach at OSSM or employing thousands of OKlahomans.

[OKCMallen]

I'll be one of the first to admit that the food doesn't even seem quite as good at the new Pearl's...but I'll take CHK any day over 10 Pearl's.

[dismayed]

CHK has done more for OKC in the past 4 years than ANY place in that area had done for OKC in the previous 100. Get some perspective. Besides, both sides say there's no buyout imminent.

Clearly they are a good corporation to have in OKC, there is no doubt about that. It is great that they have created lots of jobs. I'm just not real wild about their buying everything up in sight in that neighborhood and deep-sixing everything. Maybe I'm way out in left field, I have my opinion and you have yours, but I always felt that their redevelopment plan for the area reminded me a bit too much of some of the grand IM Pei ideas for our downtown. I heard their leadership speak of the 'master plan' once for the area, it was interesting but cryptic. They had some grand vision of buying everything and turning the area around them into something more than it is. Which is a great idea, but I wish they had gone about it differently. Some of that new development occurring in-line instead of waiting until the very end for a massive overhaul seems like a mistake to me. When I lived in OKC I always felt like that area was really one of the few places with some OKC-specific character and charm to it, and losing it probably soured my thoughts on their entire redevelopment plan. But I guess most people don't care anyway and would rather have corporate suburbia at Penn Square or Memorial Ave., so it probably wouldn't have survived much longer anyway.

Anyway, back to the company itself. If talks are going on that could effect either company's stock price no one is going to be able to mention it, surely you know that. I think it is definitely a distinct possibility. Just go pull up their balance sheet and income statement and take a look yourself. The company is like a lot of big growth companies, they rely on debt way too much. They are exposed right now... opinions are great but there's no denying the numbers.

[Spartan]

^^ once-thriving? or still-thriving? or thriving even better than before?

Well, at issue is that Chesapeake has sort of..shaken up the business community, and is just now in the process of putting it back together in the new preferred manner. Now would be a horrible time for them to be bought up.

[soonerguru]

Chesapeake has so remade the landscape there that if they sell out it's hard to imagine who or what would take their "campus."

[bluedogok]

I am sure that it is in many different parcels that could be "broken up" and be sold or leased to others.

AMD "built" a new campus in Southwest Austin, it was actually built by three different developers and "owned" by three different "companies".....which could come in handy as they keep shedding employees. All were buildings which were permitted separately so they could be sold off as a stand alone buildings, most "campus" developments are platted this way for flexibility and financing. A different company financed each building so that way the lender doesn't have to fight others for a piece and most wouldn't loan on a campus if it wasn't easily "broken" apart.

[Spartan]

Don't knock on wood with all this talk of what we'd do if Chesapeake left us..