Offshore drilling contractor Transocean has become the latest investment target of billionaire Carl Icahn.
Mr Icahn, the 18th richest man in America, has entered into an agreement with Transocean, based on his 6% interest in the company.
Under the terms, Transocean has agreed to raise dividends and increase margins by £500million by 2015 through a process of cost-cutting and improved efficiency.
The company has also agreed to reduce the number of directors on its board from 14 to 11, and appoint a second employee of Mr Icahn’s to the board.
In return, the activist investor has made some assurances he will restrict his moves on the company.
Mr Icahn said: “I believe that Transocean is now on the road to realise its great potential. We look forward to continued collaboration with its board and directors.”
In October, Mr Icahn snapped up more than 60million shares in oil giant Talisman.
The £186million investment made him the second-largest shareholder at Talisman, and follows on from his initial investment in 4.8million shares in 2007 when the company was facing pressure to boost its share price.
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