Freeport-McMoRan cut bid on McMoRan after bad well test
NEW YORK (Reuters) - Freeport-McMoRan Copper & Gold Inc cut its cash bid for McMoRan Exploration Co days before announcing plans to buy the oil and gas company, prompted by poor test results at one of McMoRan's wells, according to a regulatory filing on Friday.
The bid was reduced by nearly 5 percent, from $15.50 to $14.75 per share, following delays at McMoRan's MMR.N Davy Jones deep gas prospect off Louisiana, Freeport-McMoRan (FCX.N) said in the filing with the U.S. Securities and Exchange Commission.
Freeport-McMoRan had set out to merge with McMoRan as well as Plains Exploration and Production Co PXP.N in deals totaling $20 billion earlier this year.
McMoRan confirmed problems with its well on November 26 following a production test, sending its stock down 22 percent that day.
Freeport-McMoRan cut its bid just days before making the plans for the deal public on December 5. Its stock fell 15 percent following the news as investors felt that merging with McMoRan and Plains would distract from its copper business.
(Reporting by Sam Forgione; Editing by Richard Chang)
- Tweet this
- Share this
- Digg this
LONDON - Britain's benchmark equity index fell for a fifth straight day on Thursday, its longest losing streak since March, as improving U.S. economic data fuelled expectations that the Federal Reserve may cut its equity-friendly stimulus programme early.
FRANKFURT - New solar installations reached a fresh record of 7.5 gigawatts (GW) in Germany in 2011, playing into the hands of advocates for steeper cuts in tariff subsidies to reduce growth of solar power and the resulting higher costs for consumers.