RIG ,,, Transocean to Sell Last of Todco Stake
Wednesday May 11, 4:27 pm ET
Transocean to Sell Remainder of Its Todco Stake, 12 Million Shares
HOUSTON (AP) -- Todco said Wednesday that Transocean Inc. plans to sell 12 million Todco shares, or about 20 percent of the offshore drilling company's outstanding stock. The sale, plus additional shares to cover over-allotments, will completely divest Transocean of Todco stock.
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Transocean, also a contract driller, owns about 13.3 million shares of Todco stock, according to T. Scott O'Keefe, Todco senior vice president and chief financial officer.
"This is a continuation of a divestment strategy they've had for some time," O'Keefe said. "This is their fourth offering in the last 15 months."
Citigroup, JPMorgan and UBS Investment Bank are underwriting the offering. Transocean plans to grant underwriters an option to purchase an additional 1.3 million shares to cover over-allotments.
Todco has about 60.7 million shares outstanding. The company's shares closed down 76 cents, or 3.3 percent, at $21.98, while shares of Transocean rose 14 cents to finish at $47.62 on the New York Stock Exchange.
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