Icahn Reports 5.97% Talisman Stake

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Oct. 8 (Bloomberg) -- Activist investor Carl Icahn said he has taken a 5.97 percent stake in Canadian energy producer Talisman Energy and may seek talks with management as the company struggles to sell assets. Julie Hyman and Cristina Alesci reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Just last month.

Staying in the corporate world, carl icahn is at it again, taking a stake in energy producing canadian company talisman.

Julie hyman has the details on the stake at play, and cristina alesci will give us insight on what this says about the dealmaking environment.

Is it aching up?

Julie, what do we know about this stake?

It will make carl icahn the second-largest shareholder in talisman, i'm franklin resources, with an almost six percent take in talisman, 61 point 6 million shares.

He paid $277 million for that stake.

He disclosed the stake -- 61.6 million shares.

He paid $277 million for that stake.

He might be seeking a board seat, etc.

As comes at a time when talisman, which owns energy assets around the world, the company itself has already been exploring options.

How quickly -- the ceo of the company has said he was seeking potentially the sale of assets, might be exploring alternatives for some of its different properties.

It seems perhaps carl icahn believes the company has not been doing this quickly enough, and some investors say it could rush the process.

Some investors have said this could distract management from the course they were already on.

In terms of talisman's performance, it has slumped over the past several years along with natural gas prices.

Over the past year it has come full circle.

Not much change, but that changes today after carl icahn disclosed -- after the close of trading yesterday, we saw the shares surge, and that surge continues this morning.

Shares have been rising in recent days.

Not clear if that is because carl icahn was accumulating that stake.

Julie, thank you.

Our senior markets correspondent julie hyman.

I want to bring in cristina alesci.

It has been a big year for carl icahn, and with all due respect to him, usually people at his age are gearing up to kind of take a break, that he has really been gearing up and fighting even more.

Yeah, he gets feisty or as the years go on.

He said there were better uses for the $2 billion, and here he is putting it to work.

This is somewhat of a more typical activist target, as julie mentioned.

It is a troubled company in the sense that everybody knows they have some work to do, and in general energy companies have been targets over the last couple of years.

In terms of carl icahn's track record with energy companies, he has done better with those than he did with the fight for dell.

Energy companies and better have been better targets for activist investors.

A couple of them -- have become targets in cells, carl icahn taking on paul singer.

These energy companies know they are under extreme pressure.

Some of them are actually taking some really big steps to defend themselves, like selling assets and increasing dividends.

That generally has been better news for investors.

You had apache coming out saying they would shed $4 billion in assets.

Some other bad performers are -- or underperformers -- devon energy, newfield exploration.

Those two had been talked about as potential targets as well.

Tell me about activism in canada.

What is the track record there?


They have had some success with the canadian railroad company.

Another big activist investor has had some trouble.

The biggest flop was over a very public ugly fight.

They ended up pulling out of that deal.

It has not stopped activists from going into canada.

The number of campaigns has doubled this year, doubled in 2012 compared to 2011. so it will not deter activists, especially because they may be running out of targets domestically.

This text has been automatically generated. It may not be 100% accurate.


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