By OGJ editors
HOUSTON, Mar. 31 -- Rowan Cos. Inc. reported it intends to "monetize" through an initial public offering or a private sale its wholly owned manufacturing subsidiary LeTourneau Technologies Inc. (LTI).
The LeTourneau division manufactures offshore rigs, mud pumps, and large mobile equipment used in the forestry, mining, and transportation businesses and has designed or constructed all of the Rowan-operated jack ups.
Rowan said it plans to use at least $400 million of the proceeds to repurchase shares.
"LTI's leading market positions in its operating segments have enabled it to generate significant returns for Rowan over time," said Daniel F. McNease, Rowan chairman and chief executive officer. "Given LTI's record performance in 2007 and strength heading into 2008, we believe that now is the appropriate time for Rowan to crystallize the value we have created in LTI for the benefit of our stockholders."