In November this year Freeport-McMoRan agreed to buy Phelps Dodge for about $26 billion in cash and stock to create the world's largest publicly traded copper company. But Hedge fund SAC Capital has disclosed it has a more than 5 percent stake in mining giant Phelps Dodge Corp. and wants to block Freeport McMoRan Copper & Gold Inc.'s proposal to buy the company, saying the price is too low, a regulatory filing said. The news came on the same day that the New York Post reported that SAC was seeking a $150-per-share price for the proposed buyout, about 15 percent higher than its agreed price.
SAC filed an ownership reporting document with the U.S. Securities and Exchange Commission Monday, stating it has acquired a 5.1 percent stake in Phelps Dodge stock. It also said there was unrecognized long-term value in Phelps' shares that would be lost in the deal at Freeport's proposed terms.
Freeport had agreed to pay $88 plus 0.67 share of its stock for each Phelps share, which based on Monday's trading levels was worth about $129.31 per share.
Source: Reuters
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment