Newman Ferrara LLP is investigating potential claims against the Boards of Directors of Freeport-McMoRan Copper & Gold Inc. (“Freeport”) (NYSE: FCX), McMoRan Exploration Co. (“McMoRan”) (NYSE: MMR), and Plains Exploration & Production Co. (“Plains”) (NYSE: PXP) concerning Freeport’s proposed acquisitions of McMoRan and Plains.
On December 5, 2012, Freeport announced that it had entered into two definitive merger agreements to acquire McMoRan and Plains in transactions collectively valued at approximately $9 billion. Under the terms of each agreement, McMoRan shareholders will receive $14.75 in cash and 1.15 units of a royalty trust, which will hold a 5% royalty interest in future production from McMoRan’s existing ultra-deep exploration properties, per share of McMoRan stock owned. Plains shareholders will receive $25.00 in cash and 0.6531 shares of Freeport common stock, equivalent to $50.00 per share, based on Freeport’s December 4, 2012 closing price, per share of Plains stock owned.
Newman Ferrara LLP’s investigation concerns whether the Boards of Directors of Freeport, McMoRan, and Plains have engaged in self-dealing and have failed to act in the best interests of their respective shareholders in breach of their fiduciary duties.
James Moffett serves as Chairman of Freeport’s Board and as Co-Chairman of McMoRan’s Board, as well as McMoRan’s President and Chief Executive Officer. Richard Adkerson serves as Co-Chairman of McMoRan’s Board and as a director on Freeport’s Board, as well as Freeport’s President and Chief Executive. In addition, Robert Day, Gerald Ford, and H. Devon Graham serve as directors on the Boards of both Freeport and McMoRan. The Boards of Directors of Freeport, McMoRan, and Plains have unanimously approved their respective deals. Moreover, Plains is the largest shareholder of McMoRan, owning 31.5% of McMoRan stock.
Concerned shareholders are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or
to discuss this investigation, their rights, or potential remedies.
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