SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: May 6, 1996
READING & BATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5587 73-0642271
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
901 Threadneedle, Suite 200, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 - Press Release dated May 3, 1996 - Confirming
a proposal to Transocean regarding a
combination of Reading & Bates and
Transocean.
Exhibit 99.2 - Press Release dated May 6, 1996 - Announcing
letter of intent from BP Exploration for a
long term contract for the "HENRY GOODRICH".
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
READING & BATES CORPORATION
By /s/T. W. Nagle
------------------------
T. W. Nagle
Executive Vice President,
Finance and Administration
Dated: May 6, 1996
EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(713) 496-5000
May 3, 1996, Houston, Texas.....Reading & Bates Corporation (RB-
NYSE) confirmed today that it had made a proposal to Transocean regarding
a combination of the two companies in a transaction that would have
entitled each of Transocean's shareholders to receive 1.245 shares of
Reading & Bates' common stock for each share of Transocean common stock.
Paul B. Loyd, Jr., the Company's Chairman, President and CEO said,
"We believe our offer represents a more favorable economic result for
Transocean's shareholders and a better strategic fit between the two
companies. We are considering our options in light of the decision by
Transocean's board."
Reading & Bates is a New York Stock Exchange listed company,
providing offshore drilling services throughout the world. Its wholly
owned subsidiary, Reading & Bates Development Co., provides technical,
construction and project management services and floating production
systems to the upstream offshore oil and gas industry worldwide.
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EXHIBIT 99.2
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(713) 496-5000
May 6, 1996, Houston, Texas.....Reading & Bates Corporation (RB-
NYSE) announced that BP Exploration has issued a letter of intent for
utilization of the fourth-generation semisubmersible HENRY GOODRICH to
perform development drilling in the Schiehallion field west of Shetland
in the U.K. sector of the North Atlantic. The HENRY GOODRICH is owned by
Arcade Drilling AS, a Norwegian company in which Reading & Bates
Corporation holds approximately 74% ownership interest. The HENRY
GOODRICH is currently drilling for Shell U.K. Limited in the U.K. sector
of the North Sea, and a subsidiary of Reading & Bates is expected to take
over operation of the unit under a management contract which would begin
upon the expected commencement of the Schiehallion development drilling
with BP on October 1, 1996. The contract is expected to have a term
between 18 and 39 months, with the first 32 months priced at firm day
rates. Dayrates are mutually agreed after the first 32 months. The total
contract value of the 32 month firm priced period is approximately $129.7
million, with the final 12 months of the 32 month period having a contract
value of $51.8 million. These contract value estimates exclude possible
gain share incentives which are based on risk/reward performance elements
to be mutually agreed.
The letter of intent follows the previously announced letter of
intent issued by BP for the fourth-generation rig PAUL B. LOYD, JR., and
thus provides that both the HENRY GOODRICH the PAUL B. LOYD, JR. will be
utilized for the Schiehallion development drilling, with anticipated total
project duration of 4.5 years.
Paul B. Loyd, Jr., the Company's Chairman, President and CEO stated,
"As we stated in our earlier release with regard to the commitment by BP
for the PAUL B. LOYD, JR., the Schiehallion program is very significant to
BP and the offshore drilling and floating production business generally,
and we are extremely pleased that Reading & Bates has been selected to
execute the demanding Schiehallion development. This award, which is
subject to confirmation by Shell that the HENRY GOODRICH will be released
to meet the required timing for the Schiehallion development drilling,
further expands our relationship with BP as Reading & Bates will have
three of the world's most sophisticated deepwater harsh environment
vessels working for BP west of Shetland--the fourth-generation semis PAUL
B. LOYD, JR. and HENRY GOODRICH and the dynamically positioned
multiservice semi IOLAIR. Once again, this new project is graphic
illustration of the earnings power of our fourth-generation units as the
market for their services has tightened and they are utilized in the
specific environments for which they were designed."
Reading & Bates is a New York Stock Exchange listed company,
providing offshore drilling services throughout the world. Its wholly
owned subsidiary, Reading & Bates Development Co., provides technical,
construction and project management services and floating production
systems to the upstream offshore oil and gas industry worldwide.
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