This article illustrates the ability of shareholders control in a company. When a company decides to go public, it allows for shares in its company to be bought. In this article, Carl Icahn buys 5.97% of the energy company Talisman Energy Inc. Icahn is a billionaire investor who recently decided to get involved with Talisman as their shares have increased 13 percent, however over the past three years has fallen 27 percent due to the “slumping of natural gas prices.” (Bloomberg) Icahn “may seek talks with management as the company struggles to sell assets.” Assets are things of value owned by a business and can include cash and receivables, inventory, supplies, equipment, land and buildings. Therefore, Icahn is involving himself in this company to help Talisman sell some of these assets, in their case, most likely their energy sources. Due to Icahn’s ownership of the company he can now talk with the management regarding “strategic alternatives, board seats, etc.” and help them sell assets in order to make more money. This article relates to the accounting we learned in class as assets less the liabilities equals shareholder’s equity. Therefore, Icahn is getting involved in this company to increase the assets so that when, less the liabilities, the shareholder’s equity is increased.
Loon, Jeremy Van. “Icahn Buys 5.97% of Talisman, May Seek Talks With Company.”Bloomberg.com. Bloomberg, 07 Oct. 2013. Web. 07 Oct. 2013.