|
contents | business | |||||||||
| Freeport-McMoRan, Phelps-Dodge deal approved  U.S. mining giant Freeport-McMoRan Copper & Gold Inc. (FCX) and Phelps Dodge Corporation, one of the world's leading producers of copper and molybdenum, announced that the shareholders of both companies approved FCX's acquisition of Phelps Dodge. At each meeting, approximately 98 percent of the votes cast supported the transaction. Phelps Dodge shareholders will receive $88 in cash and 0.67 of a share of FCX's common stock for each Phelps Dodge common share, which is equivalent to a value of $125.53 based on the closing price of FCX's common stock on March 13, 2007. The cash portion of $18 billion represents approximately 70 percent of the total consideration. Following completion of the transaction, there will be approximately 334 million shares outstanding. The transaction is expected to close on March 19, 2007.Upon the closing of the merger, FCX will operate a geographically diverse portfolio of long-lived reserves of copper, gold and molybdenum. The Grasberg mine, the world's largest copper and gold mine in terms of reserves, will be the key asset of the combined company. FCX will operate significant mining operations in North and South America and will proceed with the initial development of the world-class Tenke Fungurume project in the Democratic Republic of Congo. write your comments about the article :: © 2007 Construction News :: home page |