day rate, over the course of long-term and short-term contracts. (SNG) purchased DeLong-McDermott, which was a contract drilling joint venture of DeLong Engineering and. The cost of such rigs was so high that only large companies were able to afford them. The company's fortunes suffered a downturn in 1998 and although it had made strides in redressing its situation, its debt load remained high and management decided that the time was ripe to merge with Transocean Sedco Forex. Schlumberger shareholders would receive roughly one share in the new company, Transocean Sedco Forex, for every five Schlumberger shares held. Harrison, Joan, "Transocean Rounds Out Its Service Offerings with R B Falcon Deal Mergers and Acquisitions, October 2000,. Overall, there was very little overlap in rigs. A year later, Offshore established the first jackup drilling rig in the Gulf of Mexico. Day rates by December 1996 doubled over the previous year, topping 130,000 a day.
Sedco forex international INC
Opdyke, Jeff., "Mergers Could Improve Prospects Among Stocks of Offshore Drillers Wall Street Journal, March 15, 1995,. In April 1999 Transocean Offshore was approached by Schlumberger Ltd., which proposed spinning off its offshore drilling operations, Sedco Forex Limited, as part of a merger of equals. Byrnes, Nanette, "Seven Come Eleven Financial World, March 15, 1994,. Transocean is composed of a number of drilling operations that were merged, especially during the late 1990s when the offshore drilling industry as a whole began to consolidate. The company soon was involved in yet another major expansion, acquiring R B Falcon for more than 9 billion in an all-stock transaction, which included the assumption of 3 billion in debt. Source: International Directory of Company Histories, Vol. Reading Bates attempted to outflank Sonat Offshore, venturing an unsolicited bid for Transocean ASA, which because of Norway law did not have any of the American takeover defenses at its disposal, such as "poison pill" provisions.