Freeport-McMoRan won't raise offer for Plains Exploration
BY MELODIE WARNER
PHOENIX -- Freeport-McMoRan said it won't increase its offer for Plains E&P as both companies reiterated their support of the roughly $6.9 billion cash and stock deal.
Freeport-McMoRan agreed in December to pay the cash and stock equivalent of $50 a share for Plains Exploration while also unveiling plans to acquire McMoRan Exploration for $3.4 billion in cash.
Freeport-McMoRan's intentions to acquire the two oil explorers came under fire from investors who say the tie up is riddled with conflicts of interest as six directors will have overlapping roles at Freeport and McMoRan. At the same time, Freeport shares have declined sharply since the offer was unveiled in December, driving speculation the deal might be boosted.
Plains Exploration said it continues to believe the transaction is in the best interests of its stockholders.
Plains later said it received a favorable ruling in a shareholder lawsuit that aimed to stop the deal. The Delaware court ruled the plaintiffs didn't established a reasonable probability of success on the merits of their claim the Plains board breached its fiduciary duties in connection with the proposed deal and denied their motion for a preliminary injunction.
Dow Jones Newswires