Chesapeake sets reverse stock-split shareholder meeting for Monday

Chesapeake Energy Corp. said late Thursday it has set a special shareholder meeting to approve the details of its reverse stock split. The meeting will be held Monday, the natural-gas producer said. The company's reverse stock split proposal includes ratios between one for 50 shares and one for 200 shares. If shareholders approve the plan, the final ratio will be determined by the board, Chesapeake said. The reverse stock split is expected to be effective at the end of business on Tuesday, and shares will begin trading on a split-adjusted basis the following day. Chesapeake shares have fallen under the minimum $1 bid price to continue to trade on the NYSE and the reverse stock split is intended to increase the share price, among other goals. Shares of Chesapeake rose 1.2% in the extended session Thursday after ending the regular trading day down 0.6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.