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Rig owner Seadrill (SDRL +0.7%) sells all its existing 96M shares in embattled Sevan Drilling...

  • Wednesday, January 30, 12:38 PM ET
    Rig owner Seadrill (SDRL +0.7%) sells all its existing 96M shares in embattled Sevan Drilling after a bank steps up with an “attractive offer" to buy the shares in return for a forward agreement. SDRL’s holding had moved up to 30.31% following Sevan's recent emergency equity issue to plug a funding gap; 33.3% ownership would have required a mandatory takeover offer under Oslo Stock Exchange regulations.
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This news story has 10 comments:

  •  
    I wonder why a BANK would want to by a drilling rig or two...hmmmm..shouldn´t they be making house loans or something with that money....you know...the bailout money they got from the people....really...what is a bank doing here
    30 Jan, 12:46 PM Reply Like
  •  
    Bailout money? Was it a U.S. bank? Or Norwegian or Bermuda? Neither the article nor the link detailed this.
    30 Jan, 06:51 PM Reply Like
  •  
    strange...
    30 Jan, 12:51 PM Reply Like
  •  
    This makes me believe there is another story hidden in the details. Billion dollar switches or (mistakes) don't just happen. I was about to go back in again to SDRL. Now I'm hesitant.
    30 Jan, 02:31 PM Reply Like
  •  
    I would think it's not a US bank and if it is, most likely an investment bank. Maybe they did not want Seadrill to get control and have them over a barrel somehow. Lets here from someone out there who knows.
    30 Jan, 05:01 PM Reply Like
  •  
    Why would anyone assume that "the bank" must be American, much less one that needed (as opposed to being cudgeled by the government to accept) a bailout ? Seadrill and Sevan are both Norwegian firms and, while the bank has not (yet) been identified, the transaction was conducted in Norwegian krone.

    A bank, as any commercial entity, exists to yield an investment return to its owners. There are ancillary benefits in providing a living to its employees and funding and thereby furthering the projects of borrowers. Nowhere in this hieirarchy is there an expectation that the responsibility to the owners be subordinated to these ancillary benefits, much less the political opinions that may be extant in society.
    30 Jan, 06:52 PM Reply Like
  •  
    The devil will be in the detail; note the phrase "in return for a forward agreement"; there is undoubtedly more in this than meets the eye! See http://bit.ly/VYOlid for the full details. Seadrill are still "exposed" in respect of the shares until 30/4/13
    30 Jan, 09:43 PM Reply Like
  •  
    Seadrill is not out of Sevan drilling. They only collect temporary cash from the Norwegian bank DNB for a very clear reason. All Fredriksen companys are at the moment selling huge amount of assets, and my wild guess is that they have something like 3 to 4 billions at the moment. And why? They are for 100% sure busy with a big takeover. My guess, PACD
    31 Jan, 03:32 AM Reply Like
  •  
    I am with you regarding PACD. Many smart people seem to think this would be a good long term move. Would they cut the dividend to make this happen? It is a very expensive deal till cash flow catches up in 2014/15.
    31 Jan, 09:30 AM Reply Like
  •  
    Why does so many disparage the bank "bailout". I remember(not many of us left) the bank closings and runs of the early thirties. My family was anxious, my father had prepared. Does Frederiksen do something that helps his common shareholders like me?
    4 Feb, 09:53 PM Reply Like
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