Transocean board recommends $2.24 dividend

Transocean board recommends dividend of $2.24, less the $4 Icahn had asked for

Associated Press

NEW YORK (AP) -- Oil drilling company Transocean Ltd. said Monday that its board is recommending that shareholders approve a dividend of $2.24 per share.

The dividend would be paid in four quarterly installments, the company said, totaling a payout of about $800 million. Shareholders will be able to vote on the board's recommendation on May 17.

The move comes a month after billionaire investor Carl Icahn disclosed that he has boosted his stake in the company and said he would push for it to declare a dividend of at least $4 a share. Icahn owns a 5.6 percent stake in the company.

Transocean owned the Deepwater Horizon drilling rig that exploded and sank in the Gulf of Mexico in 2010, triggering the nation's worst offshore oil spill. The company recently reached a plea agreement with the Justice Department over its role in the disaster.

Shares of Transocean rose 4 cents to close at $52.19 on Monday.

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