real-time news and commentary for investors
Tuesday, Oct 8
Icahn's stake in Talisman Energy is greeted with skepticism
- Talisman Energy (TLM) wound up tumbling 2.3% today despite Carl Icahn's disclosure of a 6% stake, suggesting skepticism that he can accelerate a corporate turnaround that may have stalled.
- TLM has "been at it for a year, so the idea that an activist investor, no matter how aggressive, is going to surface value faster, I think it’s a bit of stretch,” says a portfolio manager at First Asset Investment.
- An anticipated breakup or an outright sale is complicated by TLM's joint venture agreement with Sinopec (SNP) in the U.K. North Sea, RBC analyst Greg Pardy says; SNP last year bought a 49% interest in TLM’s U.K. division for $1.5B, and a sale of TLM’s remaining interest requires SNP’s consent.
- Asset sales in western Canada have cooled considerably since last year’s frenzy, so potential sales of TLM's Duvernay and Montney holdings could be "a longer grind."