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Tuesday, 02 December, 2008, 22:10 GMT | more >>

Seadrill takes slice of Pride



By Upstream staff 

Houston-based contract driller Pride International said Oslo-listed Seadrill had taken a stake of almost 10% in the company.

Norwegian oilfield services group Seadrill said it considered the move a financial investment.

Some analysts said that Seadrill could have bigger aims for the stake in Pride, which is one of the world's biggest offshore drilling contractors with a fleet of 64 rigs.

Pride said that it had been notified by Seadrill and affiliates that they had control of about 9.9% of Pride's stock through undisclosed forward agreements and other purchases.

Pride said Seadrill had asked it not to make the deal public, but the US company said it chose to announce the stake in the interest of shareholders in line with a 2001 stockholder rights plan.

"The board of directors of the company has taken the action announced today with respect to the rights plan because Seadrill has not provided the company with any information about its intentions, and the board wants to make sure that all stockholders are protected appropriately," Pride said in a statement.

It said that plan was "intended to protect the company's stockholders from open-market accumulations and other abusive takeover activities."

Pride shares traded up 6% on the New York Stock Exchange at $42.87 today.

Seadrill shares ended up 4% in Oslo at Nkr156 ($31.31) but the company denied it had strategic ambitions.

"We look upon this as a financial investment," Seadrill's chief operating officer Alf Thorkildsen told Reuters.

Asked if the shareholding could be a step to taking over a US driller, he said: "I have no further comment."

Oslo-listed Seadrill is the oil drilling company formed by Norwegian shipping tycoon John Fredriksen.

"They always say it's a financial investment - we have to see about that," Nordea Markets analyst Ingolf Gillesdal told Reuters.

But another analyst, who asked to remain anonymous, said Seadrill had made similar moves in the past, buying and selling stakes in rival drillers such as Ocean Rig, Apexindo and Odfjell Invest without swallowing them up.

"Obviously they don't show their cards. But Seadrill has done transactions like this several times so it's not unlikely that this is a financial investment," he said.


Tuesday, 22 April, 2008, 18:57 GMT  | last updated: Wednesday, 23 April, 2008, 06:52 GMT

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