Nabors Shareholders OK Bermuda Move

June 14, 2002 ( - Nabors Industries Inc., the world's biggest land-based oil and gas drilling contractor, said its shareholders on Friday approved a controversial plan to reincorporate the company in Bermuda to reduce its tax bill.

According to a Reuters news report, several US companies recently have transferred or plan to transfer their legal headquarters to Bermuda or other tax havens, a trend that has been criticized as unpatriotic by some politicians.

The Nabors proposal, which was opposed by the AFL-CIO and some state pension funds, was approved by 82.9% of the shares voted at the meeting, or 65.6% of the company’s total outstanding shares, a Nabors spokesman said.

Separately on Friday, a Houston federal judge denied a shareholder’s request for an injunction blocking the transfer of the company’s place of incorporation to Bermuda from Delaware.

Shareholder Steven Rosenberg claimed the company had provided misleading and insufficient information about the potential benefits of the move.

Read more at Funds Speak out on Nabors Reincorporation .