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Transocean Ltd. Message Board

  • save_n_investte save_n_investte Nov 11, 2013 8:36 AM Flag

    RIG and Icahn Reach Agreement on Dividend; also news for RIG MLP

    Transocean said it reached an agreement with Carl Icahn that would see the offshore driller paying out a dividend and reducing the number of board seats, in a move that resolves a months-long proxy battle.

    As per the agreement, Transocean would pay a $3 dividend, while reducing the maximum number of directors to eleven from fourteen. Icahn had previously pressed for a $4 per share dividend.

    Icahn, after disclosing his 5.6 percent Transocean stake in January, has gone after the world's largest drilling contractor over "ill-advised" mergers and "unsuccessful" development strategies.

    The activist investor has been campaigning for a higher payout and calling for major changes to the Switzerland-based company's board.

    Transocean on Monday said it would implement a Master Limited Partnership-type yield vehicle ("MLP") to provide additional financial flexibility.

    The initial public offering of the MLP is expected to be completed around the middle of 2014 with a minority interest sold at that stage, the company said in a statement.

    As per the agreement, Transocean will target an improvement in operating margins of about $800 million by the end of 2015. The company earlier promised to cut $300 million of costs by 2014.

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