Gabelli Reiterates Buy, $66 Target on Transocean

Gabelli & Co maintains its Buy rating and $66 price target on Transocean LTD

as the company announced a public offering of 26 million shares to help finance its Aker acquisition. Gabelli comments, “Shares indicating down $2.50 after Transocean announced this morning that it has commenced a public offering of 26 million shares with a 3 million share over allotment option at the current price of $46 for proceeds of about $1.3 billion. The proceeds will be used to partially refinance the Aker acquisition, which was initially financed with cash. The equity offering will also replenish cash that will be applied to the repurchase of $1.7 billion of 1.5% Series B Convertible Senior Notes due December 2037 but put-able by bond holders in December 2011.” RIG closed at $45.94 per share on Monday,