Freeport-McMoRan Won't Raise Offer for Plains Exploration

   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 [e-mail]

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