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To: JGreg who wrote (4882)	12/11/1997 6:24:00 PM
From: John Carpenter	Respond to of 95453

RIG has 5 fourth generation semisubmersibles and owns a 25% stake in 2 others. DO owns 3 fourth generation semis. RIG has 2 ultra deepwater drillships to DO's one.

To: JGreg who wrote (4882)	12/11/1997 6:33:00 PM
From: John Carpenter	Respond to of 95453

The reason the price spread between RIG and DO is narrowing is because fourth quarter earnings estimates are being revised downward for DO.

To: JGreg who wrote (4882)	12/11/1997 6:37:00 PM
From: John Carpenter	Respond to of 95453

RIG has an active repurchase program. The largest holder of DO is Larry Tisch's LTR. LTR is effectively reducing its stake in DO by issuing $1B in convertible bonds at a price of $65. I've spoken with representatives from both companies. I'm more impressed with the RIG people. The fact that the price spread betwwen these two companies is narrowing seems consistent with the facts. Even though DO is projected to earn $3.25 in '98 vs. RIG's $3.00, DO's current quarter estimates are being revised downward.