By Melodie Warner
Freeport-McMoRan Copper & Gold Inc. (FCX) said it won't
increase its offer for Plains Exploration & Production Co.
(PXP) 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 Co. (MMR) 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 Thursday it continues to believe the
transaction is in the best interests of its stockholders.
A special shareholders meeting is scheduled for May 20.
Plains Exploration shares were recently trading 2.4% lower at
$45.95 premarket, while Freeport-McMoRan shares were up 1.6% to
$32.90.
Write to Melodie Warner at melodie.warner@dowjones.com
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