Talisman Energy Shares Rise After Icahn Acquires 5.97% Stake

(RTTNews) - Activist investor Carl Icahn has acquired a 5.97 percent stake in Canadian oil and gas producer Talisman Energy Inc. (TLM, TLM.TO) and plans to hold talks with the company's management to discuss strategic alternatives as well as board seats. The company's shares gained almost 9 percent in extended trades following the news.

In a regulatory filing, Icahn said he has acquired 61.55 million shares of Talisman Energy, representing a stake of 5.97 percent in the company.

Icahn also said that intends to discuss strategic alternatives that might enhance shareholder value. This includes, among other things, asset sales or potential corporate restructuring. Icahn added that he may also discuss the possibility of shareholder board representation.

Talisman Energy's financial results have been negatively impacted by a slump in crude oil as well as natural gas prices. In late July, Talisman reported a lower profit for the second quarter as sales declined amid lower production and a fall in crude oil prices.

The company's net income for the second quarter declined to $97 million or $0.06 per share from $196 million or $0.14 per share in the year-ago period. Total revenue and other income fell to $1.19 billion from $1.80 billion in the prior-year period. At that time, the company revised its 2013 production guidance to the lower end of the prior range of 375,000-395,000 boe/d.

TLM closed Monday's regular trading session at $12.75, up $0.56 or 4.59 percent on a volume of 11.69 million shares. In after-hours, the stock further added $1.14 or 8.94 percent to $13.89.