Phelps Dodge Stakeholder Atticus Capital to Vote in Favor of Takeover by Freeport-McMoRan
Atticus Capital, an asset management company that owns a large stake in Phelps Dodge Corp., said Friday it plans to vote its shares in favor of the company’s takeover by Freeport-McMoRan Copper and Gold Inc.
Under Freeport-McMoRan’s offer, each Phelps Dodge share would be exchanged for $88 in cash plus 0.67 of a common share of Freeport-McMoRan.
In a Friday letter to Freeport-McMoRan Chief Executive Richard C. Adkerson, Atticus said it intends to support the proposed deal and looks forward to becoming one of the largest shareholders in the combined company, with a 6 percent stake.
Atticus, which owns a 9.97 percent stake in Phelps Dodge, said it purchased about 6 million, or 3 percent, of Freeport-McMoRan’s outstanding shares after the acquisition deal was announced.
Freeport-McMoRan shares closed up $1.22, or 2.3 percent, at $55.01, while Phelps Dodge shares closed up $1.02 at $119.90, both on the New York Stock Exchange.
