Meridian Star

New Today

November 11, 2013

Transocean agrees to deal with Icahn

NEW YORK —

NEW YORK (AP) — Oil driller Transocean has agreed to a deal with billionaire investor Carl Icahn after a months-long proxy fight.

The company said Monday that it has agreed to support a dividend of $3 per share and reduce the size of its board. It is also looking to boost margins by $800 million through cost-cutting efforts and other measures. The stock climbed in premarket trading.

Icahn, a minority shareholder in Transocean Ltd., had previously pushed for a $4 per share dividend but Transocean's shareholders rejected it. Icahn, known for shaking up companies in which he invests, had also wanted several board changes.

Transocean Ltd. said it agreed to support the re-election of Samuel Merksamer and election of Vincent Intrieri, both Icahn staffers. Merksamer was elected to Transocean's board at its 2013 annual meeting.

The company also agreed to reduce its board to 11 directors from 14. It previously proposed trimming the board's size at its 2011 annual meeting but it didn't meet the quorum requirements and the proposal wasn't voted on. Transocean said if the quorum requirement isn't met at the 2014 meeting, it plans to leave three board seats vacant.

Transocean said it will also pursue converting the company to a master limited partnership, saying that move could provide more financial flexibility. It anticipates an initial public offering of a master limited partnership being completed around the middle of next year. The offering needs the approval of Transocean's board.

Transocean said that as part of the deal with Icahn, the Icahn Group has agreed to vote in favor of the company's board nominees and certain other proposals it may recommend at the 2014 meeting.

In May Transocean's shareholders voted out Chairman J. Michael Talbert. He had been Transocean's CEO from 1994 to 2002 and served three terms as chairman before his ouster.

Transocean, based in Switzerland, owned the Deepwater Horizon drilling rig which exploded and sank in the Gulf of Mexico in 2010, triggering a massive offshore oil spill. The company agreed to a $1.4 billion settlement with the Justice Department for its role in the disaster.

Transocean's stock added $1.18, or 2.2 percent, to $54.63 in premarket trading about three hours before the market open.

 

1
Text Only
New Today
Biz Marquee
New Today
Poll

Do you think people should be allowed to carry firearms into government buildings?

Yes
No
     View Results
Facebook
Facebook
Twitter Updates
Follow us on twitter
AP Video
Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming Traditional African Dishes Teach Healthy Eating
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide