In an 140 characters tweeted at 3:13 p.m. MT Monday Oct 7th after the market closed, billionaire investor Carl Icahn reveals an approximately 61 million shares position in Calgary based Talisman Energy:
If you don't remember the activist investor Icahn, you might remember his recent dinner with "Tim" (Tim Cook of the Apple CEO fame) to push hard for a tiny "150 billion buyback" as he tweeted on Oct 1st,
So look out and watch for news of the "conversations" with Talisman management re "strategic alternatives" and getting board seats.
Could Icahn make $500 million in Talisman investment?
"Analysts figure unlocking Talisman’s hidden value could generate $500 million for the legendary raider." is the subheading of a Forbes article "The Untapped Value That Carl Icahn Sees In Talisman Energy". The author of the article came to the $500 million number from the following 3+ paragraphs,
"So what kind of alternatives is he looking for? For some clues I pulled out the August 15 report on Talisman Energy from Berstein Research oil analyst Bob Brackett and his team. As always, they provide a lot of good nuggets to chew on.
First their conclusions. They see a lot of value to be unlocked from within Talisman’s far-flung worldwide assets. On a “base” case, they calculate Talisman’s enterprise value as $18.9 billion. On a “high” case, the value is as high as $27.2 billion.
This compares with Talisman’s current enterprise value of roughly $18.4 billion ($13.2 billion in stock and $5.2 billion in debt). If Icahn can help coax and cajole Talisman’s stock up $9 billion to achieve Bernstein’s high valuation, the gain on the legendary raider’s 6% could be more than $500 million.
How could Talisman and CEO Kvisle achieve this? By doubling down on what he’s already been trying to do. [...]"
Skin in the game
Well, whether you agree with the $500 million number or not, the article is worth a read if nothing other than the world investment spotlight is shinning on Calgary again. In case you need some "skin in the game" to make this news interesting and exciting for you, let me give you a reason. As Canadians, we collective hold about C$99 million (approximately 7,978,000 shares) in Talisman Energy thanks to our Canada Pension Plan investment according to published March 31, 2013 CPP Investment Board Canadian Publicly Traded Equity Holdings.
Talisman closed at US$12.75 on the NYSE and it was up US$1.14 (8.94%) in after-hours trading after Icahn's position was made public. Let the fun begin!