Posted January 14, 2013 by Jake Emen in World

Transocean LTD(NYSE:RIG) Share Value decline - CHK, CVI & BEN

Northern, WI 1/14/2013 (avauncer) - Following the drastic drop in the share value of Transocean LTD(NYSE:RIG), the shares have seemingly become “highly attractive” to buyers, according to Barclays Capital analyst, James West. Early this January, the stock was noticed to trade at 75 percent of its net asset value, comparing it with the ten year 115 percent. It is no surprise that billionaire investor, Carl Icahn, is pursuing to expand his shares to in excess of 3 percent from the current 1.56 per cent that he holds. He could acquire the shares worth $682.1 million if this move is approved.

The bid to expand came after the U S. Gulf oil spill in Mexico. Proved to be one of the worst oil spills, it urged Transocean LTD(NYSE:RIG) to assure shareholders of $1.46 million towards damages. Within a couple of months the value of the shares dropped below 41 percent of their per-spill prices. Within 10 days of the tragedy, Icahn planned this move. According to Iberia Capital Analyst, Troy Stolz, this was no coincidental move. Icahn has bought the shares of under performing companies in the past and has proved them to make amends. Some classic case studies are  a Chesapeake Energy Corporation (NYSE:CHK), a natural gas producer in Oklahoma City, and CVR Energy Inc. (NYSE: CVI), a Sugar Land, an oil refiner based in Texas where Icahn acquired larger shares and pushed for a new board of directors.

Similarly, Icahn planned to purchase additional shares at Transocean LTD(NYSE:RIG), elevating his current percentage to 3.4. This move was planned when the shares were valued at $54.09. This would also make Icahn the second highest  shareholder as he would overtake Franklin Resources, Inc. (NYSE:BEN) who own $524.6 million of shares and finish after Capital Group Companies Inc. who have a stake worth $995.7 million calculating to 4.92 percent.

Transocean LTD(NYSE:RIG) climbed 0.02 per cent early this year. From analysts, the company has 30 buy ratings, 14 holds and 2 sells, and has seen a 21 percent surge this year. Transocean LTD (NYSE:RIG) which owned the Deep water Horizon rig will plead guilty for defying the Clean Water Act according to a federal court in New Orleans. The company will pay $400 million a criminal fine, $1 billion as civil penalties along with interest toward the casualties in the explosion. Following this settlement, the shares of the company have reached the highest value in 28 months grabbing the attention of investors like Carl Icahn.

The shares of Transocean LTD (NYSE:RIG) were up by 0.19% and closed at $54.09

The shares of Chesapeake Energy Corporation (NYSE:CHK) were up by 1.37% and closed at $16.87

The shares of CVR Energy Inc. (NYSE:CVI) were  up by 0.39%  and closed at $51.44

The shares of Franklin Resources, Inc.(NYSE:BEN) were up by 1.23% and closed at $135.66

Jake Emen

Jake Emen is a writer residing in Houston, Texas. He has written numerous articles, some for the Washington Post, USA Today, the LA Times, and the Houston Chronicle. One of AC s Top 100 Content Producers, Carly Hart s interests include news, politics, parenting, frugal living and consumer related issues. He acted as a customer advocate and has extensive experience working on Wall Street. As a highly acclaimed industry leader, he has been a catalyst for public education and accessability of financial services.