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Shipping tycoon John Fredriksen is set to raise his stake in Seadrill (SDRL +2%), after selling...

Shipping tycoon John Fredriksen is set to raise his stake in Seadrill (SDRL +2%), after selling shares earlier this year, as the rig contractor’s share price has slumped in recent months. Fredriksen will exercise a put option to buy back up to 6M shares from Goldman Sachs, or a quarter of the 24M shares it sold for more than $1B earlier this year.
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Comments (2)
  • saratogahawk
    , contributor
    Comments (2210) | Send Message
     
    I expected this to happen when the market took SDRL down so much. He might as well take back the stock and earn the near 10% plus cap gain when it pounds back to 40+ soon. Sounds like a good deal for Hemen to buy back.
    14 Jun 2012, 11:05 AM Reply Like
  • FlaYankee
    , contributor
    Comments (123) | Send Message
     
    I never could understand the price swoons of Seadrill when it has such a huge order backlog and offers one of the highest dividend yields among the oil drillers. Its ultra-deepwater drills are in high demand and fully contracted out giving it revenue stability, its debt while high is amply covered and the company is committed to returning cash to shareholders through its high dividend yield. Market uncertainty provides the opportunity to pick up shares on the cheap and lock in an attractive dividend as well. Long SDRL and NATDF.
    15 Jun 2012, 02:21 PM Reply Like
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