Transocean and Icahn Agree on Dividend, Strategy, Board Seat
Transocean and Icahn Agree on Dividend, Strategy, Board Seat (New York Times)
Today, Transocean (RIG) reached an agreement with shareholder activist Carl Icahn to settle a monthslong disagreement regarding the future direction of the company. Transocean will pay a $3-a-share dividend, make $800 million in cost cuts and pursue a master limited partnership (MLP) along with other strategy shifts. Mr. Icahn, who owned a 6% stake as of June 2013, will gain a second seat on a newly shrunk board of directors.
Icahn Enterprises, L.P. (IEP) opened down, but has risen steadily since the announcement of this settlement. IEP is currently recommended by Eagle Daily Investor contributor Nicholas Vardy in his Alpha Investor Letter and previously recommended by Eagle Daily Investor contributor Dr. Mark Skousen in his High Income Alert, where subscribers recently realized triple-digit percentage gains on that position.