Transocean makes peace with Icahn

Transocean ended its feud with Carl Icahn today, agreeing to pay a $3-a-share dividend, make $800 million in cost cuts and undertake shifts in strategy.

Among the changes that Transocean, the oil driller, will pursue is putting some of its assets in a master limited partnership, which the company said could provide financial flexibility.

In return, Mr Icahn will gain a second seat on the board, which the company plans to shrink to 11 from 14. Shareholders endorsed one of his nominees, Samuel Merksamer, at an annual shareholder meeting in May. The agreement finally puts to rest a monthslong disagreement between the sides.

“I believe that Transocean is now on the road to realise its great potential,” Mr. Icahn said in a statement. – (Copyright the New York Times service 2013)