Freeport-McMoRan pays 33% premium to acquire Phelps Dodge


From Reuters
Sunday, November 19, 2006

NEW YORK -- Freeport-McMoRan Copper & Gold Inc. said on Sunday it agreed to acquire Phelps Dodge Corp. for $25.9 billion in cash and stock, creating the world's largest publicly traded copper company.

Freeport-McMoRan said it will pay a total of $126.46 per Phelps Dodge share.

Each Phelps Dodge shareholder would receive $88 per share in cash plus 0.67 of a common share of Freeport-McMoRan.

Freeport-McMoRan said this represents a premium of 33 percent to Phelps Dodge's closing price on November 17 and a premium of 29 percent to its one-month average price at that date.

On Friday, Nov. 17, Phelps Dodge shares closed at $95.02, while Freeport-McMoRan's stock closed at $57.40, both on the New York Stock Exchange.

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Joint press release from Freeport-McMoRan and Phelps Dodge:

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at the
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Sunday and Monday, January 21 and 22, 2007

Admission is free for those who register in advance. The conference has arranged discount rates at the Pan Pacific Hotel adjacent to the convention center.

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