Freeport-McMoRan Copper & Gold Inc cut its cash bid for McMoRan Exploration Co days before announcing plans to purchase 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 Davy Jones deep gas prospect off Louisiana, Freeport-McMoRan 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 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.
Freeport-McMoRan Copper & Gold Inc. (FCX) is an international mining company. Shares of FCX fell by 1.6% or $-0.54/share to $33.14. In the past year, the shares have traded as low as $30.54 and as high as $48.96. On average, 19131900 shares of FCX exchange hands on a given day and today's volume is recorded at 12394589.
McMoRan Exploration Co. (McMoRan) is engaged in the exploration, development and production of oil and natural gas in the shallow waters (less than 500 feet of water) of the Gulf of Mexico and onshore in the Gulf Coast area of the United States. Shares of MMR traded higher by 0.13% or $0.02/share to $15.75. In the past year, the shares have traded as low as $7.25 and as high as $15.97. On average, 5719390 shares of MMR exchange hands on a given day and today's volume is recorded at 2083856.
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