Transocean to pay dividend, create MLP in deal with Icahn

|About: Transocean Ltd. (RIG)|By:, SA News Editor

Transocean (RIG) has ended a months-long proxy battle with 5.6% shareholder Carl Icahn by agreeing to pay a dividend of $3 a share and cutting the number of board seats to 11 from 14.

The payout is below Icahn's earlier demand of $4 a share.

Transocean also plans to create a master limited partnership that will provide further financial flexibility. The company will sell part of of the MLP in an IPO in mid-2014.

One Icahn nominee will be re-elected to Transocean's board, while another will be appointed.

The company will aim to improve its operating margins by $800M by the end of 2014. (PR)