Categories: U.S. Investing

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.

Tell us about your experiences with shareholder activism. When and how do you exercise your shareholder votes? Tell us below.

Adrienne Minor

Adrienne Minor is an editorial assistant for Eagle Financial Publications. She writes, edits and posts articles for the website, as well as edits and assists in the online distribution of Eagle’s investment newsletters, trading alerts, e-letters and other reports. Adrienne's special investing interests are in mobile technology and consumer spending.

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