Icahn's stake in Talisman Energy is greeted with skepticism

|About: Talisman Energy Inc. (TLM)|By:, SA News Editor

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."