The Five Dumbest Things on Wall Street This Week

3. Copper Top?

Investors in miner Phelps Dodge (PD Quote) finally struck gold.

The Phoenix-based metals company agreed this week to sell itself to Freeport-McMoRan (FCX Quote) of New Orleans for $26 billion. Phelps Dodge shares soared 26% Monday on news of the deal, which will create the biggest publicly traded copper miner.

"This transaction provides Phelps Dodge shareholders a significant premium for their shares," said Phelps chief Steven Whisler.

Until recently, Whisler seemed oblivious to the notion that a significant premium is something investors might want. While some observers were calling on the company to sell itself, or at least buy back stock, Phelps Dodge spent the summer pursuing a bizarre three-way merger with Toronto-based Inco and Falconbridge.

But Phelps didn't have the deep pockets or the clout on Wall Street to complete the $40 billion proposal. The deal fell apart after big shareholders complained, saying Phelps was in over its head.

That criticism seems to be borne out by Sunday's agreement, which will put Freeport execs in control and thrust Whisler into retirement.

"I believe our management team," Whisler explained in Sunday's announcement, "possesses the skills in open pit and underground mining and mineral processing to add value to FCX's operations."

It's about time they added value somewhere.

Dumb-o-Meter score: 85. Someone finally blew the whistle on Whisler.