WSJ reports they are settling with shareholders for $100mm with allegations over insider dealing on the Plains Exploration and McMorran deal. I only mention this since I had posted about it in may.
The management of FCX was also on the McMorran Exploration board, and the allegation is that the buyout was really a bailout for struggling McMorran Exploration. Cross-holdings meant that PXP had the ability to block the deal, and so it was necessary to buy them out too. The market reacted terribly when this deal was announced at the end of 2012. I bought some shares in the high 20s when they sold off, and sold them at just above $30 a few months ago.
This is an example of how the management and board members tend to collude for their own benefit at the expense of shareholders. This management had generally been considered "shareholder friendly" because of their policies. That changed suddenly with the announcement of this acquisition.
The management of FCX was also on the McMorran Exploration board, and the allegation is that the buyout was really a bailout for struggling McMorran Exploration. Cross-holdings meant that PXP had the ability to block the deal, and so it was necessary to buy them out too. The market reacted terribly when this deal was announced at the end of 2012. I bought some shares in the high 20s when they sold off, and sold them at just above $30 a few months ago.
This is an example of how the management and board members tend to collude for their own benefit at the expense of shareholders. This management had generally been considered "shareholder friendly" because of their policies. That changed suddenly with the announcement of this acquisition.
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