Carl C. Icahn Issues Open Letter To Transocean Shareholders

         Carl C. Icahn Issues Open Letter To Transocean Shareholders

PR Newswire

NEW YORK, March 7, 2013

NEW YORK, March 7, 2013 /PRNewswire/ --Carl C. Icahn today delivered the
following open letter to shareholders of Transocean Ltd.

Dear Fellow Shareholders of Transocean:

Today we delivered a formal letter to Transocean Ltd. informing them that I
will be including the following items on the agenda at the Company's 2013
Annual General Meeting of Shareholders:

  oA proposal to approve a $4 dividend per share to be paid in four equal
    quarterly installments,
  oTo elect three new directors, John J. Lipinski, Jose Maria Alapont and
    Samuel Merksamer, to the Board, and
  oA proposal to repeal the Company's staggered board.

I am proposing the $4 dividend because I believe that a high dividend payout
ratio is the only way that Transocean will consistently employ a disciplined
and sensible approach to capital allocation. Over the past several years, in
my opinion, the Company has conducted ill-advised mergers, employed
unsuccessful development strategies and squandered the substantial cash flow
generated by the business. Now, it appears to me, the Board and management
would like to take the Company's substantial cash flow and use it to achieve
three goals: the massive repayment of the company's low coupon debt, the
aggressive new build growth locked up with low return contracts, and the
payment of a meager dividend to shareholders.

I believe that the inability of Transocean to grow and pay down debt is a
function of poor capital allocation which has driven the share price to below
net asset value. Once the capital allocation problem has been solved, in my
opinion, Transocean will have access to yield hungry investors to finance
growth and acquisitions on attractive terms.

I believe that to permanently repair the failed capital allocation strategy,
shareholders of this Company must replace the directors who have been the
architects of this failed strategy, including the Chairman. The directors that
I have chosen have substantial experience in the creation and issuance of
non-traditional yield structures, driving shareholder returns through capital
allocation, and managing and growing large corporations both internationally
and in the energy sector. If these nominees are elected, which I expect they
will be, I truly believe it will serve shareholders well.

Over the next several months I look forward to continuing a dialogue with you
about the future of Transocean. I hope I can count on your support.

NOTICE TO INVESTORS

SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS
RELATED TO THE SOLICITATION OF PROXIES BY Carl C. Icahn AND HIS AFFILIATES
FROM THE STOCKHOLDERS OF TRANSOCEAN LTD. FOR USE AT ITS 2013 ANNUAL GENERAL
MEETING WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN SUCH PROXY
SOLICITATION. WHEN COMPLETED, A DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY
WILL BE MAILED TO STOCKHOLDERS OF TRANSOCEAN LTD. AND WILL ALSO BE AVAILABLE
AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT
HTTP://WWW.SEC.GOV. INFORMATION RELATING TO THE PARTICIPANTS IN SUCH PROXY
SOLICITATION IS CONTAINED IN THE SCHEDULE 13D RELATING TO TRANSOCEAN LTD.,
FILED BY THE PARTICIPANTS ON JANUARY 25, 2013, AS MAY BE AMENDED FROM TIME TO
TIME (THE "SCHEDULE 13D"). EXCEPT AS OTHERWISE DISCLOSED HEREIN, THE
PARTICIPANTS HAVE NO INTEREST IN TRANSOCEAN LTD. OTHER THAN THROUGH THE
BENEFICIAL OWNERSHIP OF SHARES, PAR VALUE CHF 15.00, PER SHARE, OF TRANSOCEAN
LTD., AS DISCLOSED IN THE SCHEDULE 13D, AS MAY BE AMENDED FROM TIME TO TIME.
THE SCHEDULE 13D, AS MAY BE AMENDED FROM TIME TO TIME, IS AVAILABLE AT NO
CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT
HTTP://WWW.SEC.GOV.



SOURCE Carl C. Icahn

Contact: Susan Gordon, +1-212-702-4309
 
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