By Melodie Warner
Activist investor Carl C. Icahn again urged Transocean Ltd.
(RIG) shareholders to vote for his board slate and his proposed 79%
annual dividend increase at the offshore-oil-rig company's May 17
annual meeting.
Last month, Transocean's board described Mr. Icahn's demand that
the company raise its annual dividend to $4 a share from $2.24 as
shortsighted, saying it didn't take into account the cyclical
nature of the offshore-drilling business or its capital-intensive
demands.
The board also criticized the three board members proposed by
Mr. Icahn, who owns roughly 5.6% of Transocean's shares, saying the
nominees lack the requisite energy-industry experience and were put
forth because they are longtime employees or associates of the
investor.
Mr. Icahn in a letter to shareholders released Thursday said his
proposed directors are capable, willing and prepared "to focus the
company on higher return opportunities and distribute more cash to
shareholders."
He said Jose Maria Alapont has more than 30 years of global
leadership experience at both vehicle manufacturers and suppliers,
with business and operations responsibilities in the Europe, Middle
East and Africa, Asia Pacific, and Americas regions.
John J. Lipinski has had a long career in the energy industry,
including as chief executive and president of CVR Energy Inc. (CVI)
and CVR Refining LP (CVRR).
Samuel Merksamer has investing experience and a strong
understanding of business operations and finance, Mr. Icahn
said.
Transocean shares were recently trading 17 cents higher at
$50.09 premarket. The stock has climbed 12% so far this year
through Wednesday's close.
Write to Melodie Warner at melodie.warner@dowjones.com
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