Transocean ended its feud with Carl C. Icahn on Monday, agreeing to pay a $3-a-share dividend, make $800 million in cost cuts and undertake shifts in strategy.
Among the changes that Transocean, the oil driller, will pursue is putting some of its assets in a master limited partnership, which the company said could provide financial flexibility.
In return, Mr. Icahn will gain a second seat on the board, which the company plans to shrink to 11 from 14. Shareholders endorsed one of his nominees, Samuel Merksamer, at an annual shareholder meeting in May.
The agreement finally puts to rest a monthslong disagreement between the two sides. At Transocean’s annual meeting, Mr. Icahn failed to win investor support for his other main proposal, a $4-a-share dividend.
But he has lingered in the stock, disclosing a 6 percent stake as recently as June.
“I believe that Transocean is now on the road to realize its great potential,†Mr. Icahn said in a statement. “We look forward to continued collaboration with the board of directors and management.â€
It is Mr. Icahn’s latest accomplishment as a shareholder activist this year. He forced a slight bump in price for the takeover of Dell Inc. after months of bitter warfare with the company’s founder.
And he is pressing Apple Inc. to pursue a huge stock buyback, though shareholders and analysts appear much more skeptical about his chances of victory there.
