Talisman says splitting company would be challenging
CALGARY, Alberta (Reuters) - Talisman Energy Inc TLM.TO said on Wednesday that it has been pressured by shareholders to split the company in two, but such a move would be challenging because of constraints involving its credit rating, obligations from a North Sea joint venture and other considerations.
Hal Kvisle, the company's chief executive, said on a conference call he sees the potential benefits of splitting Talisman's business in Asia and the Americas, but the company would continue the restructuring it began a year ago as it continues to evaluate all its options.
"Splitting the company is only valid if the two companies that arise from the split are strong and viable stand-alone entities," Kvisle said. "A split, or a variation like a spin-out of one part of our business, would be challenging to execute today."
(Reporting by Scott Haggett; Editing by Gerald E. McCormick)
© Thomson Reuters 2017 All rights reserved.