Transocean Ltd. (NYSE:RIG) Faces Icahn Fight
Northern, WI 05/14/2013 (gdpwatch) – The largest offshore rig contractor, Transocean Ltd. (NYSE:RIG) shares closed at $54.50, down by 0.26%. The company is amidst the election of chairman and other members of the board with fight from Carl Icahn to appoint his nominees.
Carl Icahn’s Fight
Carl Icahn, who holds 5.6 percent stake in Transocean Ltd. (NYSE:RIG) has demanded that the chairman of the company, Michael Talbert should step down. He also demands that his nominee be voted to chair the board and seeks that three of his nominees be appointed to the board. Carl Icahn had also demanded that Transocean Ltd. (NYSE:RIG) issue $4 dividend per share this year.
Following such oppositions, Michael Talbert had decided to step down the board and face the elections. However, Transocean Ltd. (NYSE:RIG) is all set to recommend its shareholders to vote back Talbert to chair the board for the next term, over which Carl Icahn is totally unhappy.
Transocean Ltd. (NYSE:RIG)’s proposal
The rig contractor had however proposed to offer $2.24 per share as dividend following the previous year’s nonpayment. Transocean Ltd. (NYSE:RIG) maintains that this level of dividend payment would ensure that the company maintains good level of investment grade credit rating and strong and flexible value in its balance sheet.
Carl Icahn had criticized the move by Transocean Ltd. (NYSE:RIG) to vote back Michael Talbert to chair the board. In addition, Glass Lewis & Co. and Institutional Shareholders Services have also advised the shareholders to vote against reelection of Michael Talbert on the grounds that he led Transocean Ltd. (NYSE:RIG) during the years of underperformance.
Transocean Ltd. (NYSE:RIG) had however assured that the board and the company would support the actions of Carl Icahn’s nominee if he were to be elected to chair the board.