Wednesday, September 1, 2010

Transocean (NYSE:RIG) Draws Interest of Billionaire John Fredriksen

Shares of Transocean (NYSE:RIG) surged today on news billionaire John Fredriksen may be interested in acquiring the company via his Seadrill Ltd.

Transocean is the owner of the Deepwater Horizon oil rig which it leased to BP (NYSE:BP) and exploded, causing the oil spill and loss of 11 lives.

Fredriksen said in an interview that he likes Transocean because it's cheap and has quality equipment.

Transocean has plummeted from over $88 a share several months ago to $53.52 as of 11:54 AM EDT today.

Shares are up over 5 percent on the news of Fredriksen's interest.

Frediksen said he isn't concerned about new regulations, as they would benefit companies which have newer rigs.

Transocean is about 65 percent larger than Seadrill, which reported earnings yesterday of $316 million, or $0.72 a share, down from the same quarter last year, where they earned $339 million, or $0.81 a share.

Even so, they did manage to be analysts' estimates of $248 million.


  1. RIG posted earnings August 31? Hello????

  2. Transocean is trading below book value and it is a quality blue chip stock. This stock is certainly a steal now.