Tags: talisman | energy | stock | price | spike

Talisman Energy Stock Price Spikes on Carl Icahn Buy-In

Image: Talisman Energy Stock Price Spikes on Carl Icahn Buy-In Carl Icahn

Wednesday, 09 Oct 2013 08:36 AM

By Michael Mullins

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Talisman Energy's stock price spiked Tuesday morning after investor and hedge fund manager Carl Icahn revealed that he had acquired a 5.97 percent stake in the company via a Tweet Monday evening, suggesting that he has plans for getting more value out of the company.


The oil and gas company's stock price jumped to $13.83 at the start of trading Tuesday after having closed one day earlier at $12.75 a share.

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Icahn's announcement seemed to have worn off however by the closing bell on Tuesday, which saw the stock price sink down to $12.89.

Founded in 1992, Talisman Energy is one of Canada's largest independent oil and gas exploration and production companies. Headquartered in Calgary, Alberta, it consists of nearly 3,000 employees throughout North America, Europe, and Asia.

In a recent U.S. regulatory filing, the Brooklyn-born Icahn suggested his possible interest in taking a seat on the Talisman board of directors so to "enhance shareholder value" of the company's 61.5 million shares, CBC News reported.

"The reporting persons intend to have conversations with members of the issuer's management to discuss strategic alternatives which may enhance shareholder value, including, among other things, asset sales or potential corporate restructuring," his filing said, according to CBC News.

So what attracted Icahn to Talisman Energy?

Forbes magazine reports that Talisman Energy's "far-flung worldwide assets" could be the key to unlocking the company's hidden value.

Presently, Talisman Energy’s various enterprises are valued at $18.9 billion, however according to an Aug. 15 report from Berstein Research oil analyst Bob Brackett, those assets on a "base" level are actually worth $18.9 billion, and on a "high" case, worth $27.2 billion, Forbes reported.

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This apparent undervaluation was not apparently missed by Icahn.

The hedge fund manager who has been characterized by some as being a corporate raider recently made news when he retreated from his attempt to acquire Dell and was seen as having been responsible for an August surge in Apple's stock price after having announced that he had amassed a "large position" in the computer software giant.

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