* Second time Icahn has taken a position in Talisman
* Doubts on whether activist investor can speed change
* Share fall 1 percent in afternoon trading (Updates shares and adds background.)
By Euan Rocha and Scott Haggett
TORONTO/CALGARY, Oct 8 (Reuters) - Talisman Energy Inc shares fell on Tuesday as investors raised doubts thatactivist investor Carl Icahn would be able to force dramaticchanges on the struggling Canadian oil producer.
Icahn disclosed a 6 percent stake in Talisman late onMonday, making him its second-largest shareholder, according toReuters data. It is the second time Icahn has taken a positionin Talisman. He acquired 4.8 million shares in 2007, when thecompany was facing pressure to boost its share price.
Talisman shares have risen some 11 percent since the startof the month, as rumors swirled that an activist investor wasbuilding a position in the company. In the 12 months prior, thestock sagged 10 percent, despite a restructuring and asset saleprogram under a new management, as profits remained weak and itsNorth Sea operations faltered.
"As a long-suffering shareholder, we are happy to see someprice realization right now, but we are wary as the stock hasalready moved quite a bit in the last couple of weeks given thespeculation around activist involvement," said Ryan Bushell aportfolio manager at Leon Frazer, which owns about 1.55 millionTalisman shares, according to Thomson Reuters data.
"For the long term, whether this will result in taking thecompany where it needs to go - that for me is still very much inquestion."
The shares were down 1 percent afternoon trading on theToronto Stock Exchange.
Icahn, 77, said in a filing with the U.S. Securities andExchange Commission he intended to talk with Talisman'smanagement to discuss strategic alternatives for the company,including asset sales or restructuring. He might also seek aboard seat, according to the filing.
Many analysts noted that Talisman has already been workingon a restructuring and asset sales process for months.
"Although the presence of Icahn's beneficial interest mayexcite some investors, we remain cautious on the story goingforward, particularly given that management is currently in themidst of a portfolio restructuring initiative," JPMorgan analystKatherine Minyard said in a note to clients.
"Moreover, we believe that any positive investor sentimentmay be tempered over the long run as long as Talisman retains asomewhat scattered and unfocused portfolio."
Talisman was the Canadian unit of BP Plc before beingspun off in 1992. Under the leadership of Jim Buckee, thecompany embarked on an acquisition spree, including acontroversial stake in a Sudan oilfield that made Talisman thetarget of human-rights protesters who said oil revenues wereaiding the government during a brutal civil war.
Buckee sold the Sudan assets in 2003. By the time he retiredin 2007, Talisman was Canada's No.3 oil producer. But even then,it faced pressure to split up its global operations, a step bothBuckee and Manzoni, his successor, rejected.
Hal Kvisle, who took over as Talisman chief executive inSeptember 2012 following the abrupt departure of John Manzoni,is refocusing the company's sprawling global presence toconcentrate operations in North and South America and SoutheastAsia. He is also restructuring production away from low-valuenatural gas.
The company is looking to raise as much as $3 billion fromasset sales this year. Talisman is looking to sell lands in theNorth Duvernay shale-gas region of Alberta and parts of itsholdings in the Montney field, which straddles Alberta andnortheastern British Columbia.
It is also looking to sell its 12.15 percent stake in theOcensa pipeline, which carries 650,000 barrel of oil per dayfrom Colombia's interior to an oil port on the country'sAtlantic coast. Sources have also told Reuters the company isexploring the sale of its shale assets in the Eagle Ford basinin south Texas.
Talisman completed the sale of a 49 percent stake in itsNorth Sea operations to Sinopec for $1.5 billion inDecember.
BMO analyst Randy Ollenberger sees Icahn's involvement as apotential catalyst for Talisman's stock price.
"However, the sale of all or part of the company willclearly take time and there are no guarantees the company isable to achieve prices that will meet the market'sexpectations," Ollenberger said in a note to clients. (Reporting by Euan Rocha and Scott Haggett; Editing by JohnWallace and Andre Grenon)