Boston, MA, 11/12/2013 (wallstreetpr) – Transocean LTD (NYSE:RIG), Carl Icahn and some of the other investment funds which are being managed by Mr. Icahn of Icahn Group made an announcement of an agreement which would see after the world’s largest drilling contractor payout dividend. This would help in reducing the number of board seats and also end a year – long proxy battle.
Icahn Group which holds around 5.61 percent stake in the offshore driller has said that the management of the company has made an unsuccessful development strategy. According to him the unsuccessful development plan has destroyed billion of dollars which can easily be depicted from the performance of the Transocean LTD shares as compared to the shares of its competitors. Transocean LTD was the owner of the Deepwater Horizon Rig located in Gulf of Mexico which exploded in April 2010. This explosion killed around 11 workers and this also led to one of the worst offshore oil spin in the entire history of the United States of America.
Under the terms and conditions of the agreement, the management of Transocean LTD has agreed to implement a Master Limited Partnership type yield vehicle which is also known as MLP. This would help in providing additional financial flexibility and would also enhance the execution of the asset strategy belonging to the company. The IPO of the MLP is expected to be completed by 2014 according to the statement made available by the company.
Moreover, under the deal Transocean LTD also agreed to pay a share dividend of around $3 per share at the time of reducing the maximum number of directors on the board. Icahn Group earlier had pressed a share dividend of around $4 per share. This agreement would also see the re – election of Samuel Merksamer and election of Vincent Intrieri to the board.
