Phelps Dodge Rebounds
Representatives from Icahn Associates and Third Point Capital were unavailable for comment.
To be sure, many of Phelps Dodge's big institutional investors support the deal. According to some sources who attended a meeting in Boston last week with Phelps executives, a number of big shareholders are slowly getting on board. It's entirely conceivable that the rally in Phelps' shares is a sign investors are buying into the wisdom of the marriage of a giant copper producer with two nickel ore miners.
Opponents of the deal still have a lot of obstacles to overcome, even if more activists do show up to fight the merger. One huge hurdle is Wall Street firm Morgan Stanley (MS), the fourth-largest Phelps Dodge shareholder, according to recent filings, with a $605 million stake.
Morgan Stanley has a big stake in seeing the merger work. The firm is not only a major Phelps shareholder, but also the adviser to Inco on the transaction. According to a merger proxy statement filed on Thursday, Morgan Stanley's investment bankers were the driving force behind the three-way deal.The filing shows that in mid-May, Ramiro Peru, the CFO of Phelps Dodge, called representatives at Morgan Stanley and told Inco's advisers that the firm would be "open to discussing how it might assist Inco to respond to the hostile bid for Inco made by
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV