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Transocean Gains on Settlement of Proxy Fight with Carl Icahn

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The saga between Transocean LTD (NYSE:RIG) and activist investor Carl Icahn has come to an end! The two sides have reached an agreement over the month long proxy fight where Carl Icahn was demanding that the offshore contract drilling provider increase dividend to $4 per share and switch up the making up of Transocean’s board. Icahn holds a 5.6 percent in the company. Terms of the deal reached today increases dividend payout to $3 per share and cuts the number of board directors to from 14 to 11. Carl Icahn also got Transocean to appoint one of his cronies to the board. Icahn always gets his way at the end! No surprise, the market loves the news; the stock is up 4 percent.