Shares of Tailsman Energy Rally After Company Makes Management Shift
Shares of Talisman (NYSE: TLM), an upstream oil and gas company, traded higher Monday after the company announced that its chief executive officer John Manzoni has agreed to step down.
No reason was given for Manzoni's resignation.
Manzoni will be replaced by Hal Kvisle, formerly of TransCanada (NYSE: TRP). At TransCanada, a North American energy infrastructure company, Kvisle served as chief executive officer, guiding the company through a period of choppy growth. He will now serve as both director and chief executive officer of Talisman.
Talisman's Chairman of the board told the Toronto Herald that John has already made a significant contribution in his time as director.
"Since that time, Talisman successfully entered the unconventional business, establishing a substantial presence in some of the best shale plays in North America. In addition, his focus on investing in and developing core capabilities will serve Talisman well in the future. The board would like to thank John for his five years with the company and we wish him well."
Being familiar with the company from his experience as director, there might not be a significant learning curve as Kvisle moves into the role of chief executive officer, allowing the company to quickly capitalize on the contribution he can make.
Talisman shares have been on the rise since mid July following the sale of a 49% stake in its U.K. North Sea Business. The company also received a boost when China National Offshore Oil purchased Nexen (NYSE: NXY), a similar firm to Talisman, for $15.9B, well above market price. The acquisition boosted optimism in Talisman's value and helped continue the company's rally.
The market currently has Talisman valued at $14.95B, but with the recent purchase of Nexen, investors seem to believe Talisman is undervalued.
Shares of Talisman Energy traded up Monday around $14.55, up roughly 2.54%.
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