photo: Stein Henningsen

Norwegian offshore contractor Seadrill Ltd. is sueing Oslo Bourse over the exchange’s decision to compel the company to make a higher offer to shareholders for rival Eastern Drilling.

Seadrill is seeking anulment of the Stock Exchange Appeals Committee’s decision of Dec. 12, 2006, when it ruled Seadrill would have to make another offer for securing in part a “less expensive” swap from shareholders in its bid to acquire Eastern equity.

Conflict between the Bourse and Seadrill has allegedly hampered management of Eastern Drilling, with newspaper Dagensnæringsliv reporting leadership under strain. The paper also reported the bourse’s apparent two minds on the Eastern question — its Board overturned its earlier decision in favour of Seadrill for the Appeals Committee’s less favourable ruling.

A punitive $320,000 a day is the exchange’s fine for every day after March 21 during which Seadrill fails to make a new offer rather than sell shares.

“The ruling … that Seadrill shall pay a daily fine unless it makes a mandatory offer in accordance with the ruling … is not affected by these proceedings,” a statement from the Bourse warned.