Boston, MA 09/23/2014 (wallstreetpr) – According to reports, breakup between Billionaire John Fredriksen and Tor Olav Troeim has put negative effect on the shares of Seadrill Ltd (NYSE:SDRL) and Marine Harvest ASA (NYSE:MHG). Both the companies experienced huge slump in shares after the news of fall-out of those two came out in the market.
Insights of the share slump:
Recently Troeim announced to leave the board of the largest offshore driller by market value, which led to 3.9% drop in Seadrill in Oslo, followed by 4% drop on Friday. SDRL has 39% stake of in Archer Ltd. (OTCMKTS:ARHVF), so drop in SDRL’s shares also caused 5.4% drop in ARHVF. At the same time, MHG, the biggest salmon producer also declined by 2.6%. Troeim not only took his name off from the board, but also withdrew his nomination from above mentioned companies a day after his resignation from the board.
As per the information, Troeim has been a great support for Fredriksen over the past two decades as he helped Fredriksen to expand his shipping empire beyond the conventional boundaries to salmon farming and offshore drilling. He announced in the month of July that he would step-down as the main advisor of Fredriksen, but would continue to focus on Golar LNG Limited (USA) (NASDAQ:GLNG) and SDRL. He also said that he would continually giving his services in the board of several of Fredriksen’s companies.
According to one of the analysts at Handelsbanken Capital Markets, people could sense that Troeim would finally be thrown out of the Fredriksen system, but hardly anyone had thought that it would happen so quickly. He further added that Troeim was like a base for Fredriksen system, losing him at such a crucial time was not a good sign for Seadrill Ltd (NYSE:SDRL). No reporter could reach Fredriksen or Troeim personally for their comments on this fall-out issue.