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Transocean Restores Dividend After Investor Icahn Pressure

Transocean Ltd., the owner of the Deepwater Horizon rig that exploded while drilling in the U.S. Gulf of Mexico in 2010, reinstated dividend payments following pressure from billionaire shareholder Carl Icahn.

The board will recommend an annual payout of $2.24 a share, about $800 million in total, and boost debt repayments by retiring another $1 billion by the end of next year on top of current payment obligations, Transocean said today in a statement. The Vernier, Switzerland-based company, which had $5.13 billion in cash at the end of 2012, stopped payments a year ago to defend its investment-grade credit rating and maintain a “strong, flexible balance sheet.”