Talisman says splitting company would be challenging

Wed Nov 6, 2013 11:03am EST
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CALGARY, Alberta Nov 6 (Reuters) - Talisman Energy Inc 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."