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Freeport, Plains to pay extra dividends to gain shareholders support for deal.


20 May 2013 - US miner Freeport-McMoRan Copper & Gold Inc (NYSE:FCX) and its takeover target, oil and gas firm Plains Exploration & Production Co (NYSE:PXP), said on Monday they would pay extra dividends to shareholders, in an effort to win their support for the planned cash-and-stock deal ahead of the vote later today.

The buyer will pay a supplemental dividend of USD1.00 (EUR0.77) per share upon completing the purchase of Plains. Based on the expected number of 1.038bn common shares outstanding, the extra dividend payment will total around USD1bn, FCX said.

In a separate statement, Plains said it had received approval by FCX to declare a special one-time cash dividend of USD3.00 per share. It will pay it immediately before the completion of the deal.

Under the terms of the transaction, agreed in December last year, FCX will acquire every share of the target in exchange for USD25.00 in cash plus 0.6531 shares of FCX common stock. Earlier this month Plains recommended the deal for approval, although the buyer said it would not increase the consideration as part of the offer. The deal, which is worth around USD6bn, according to Reuters, is facing opposition from the targeta[euro](tm)s minority shareholders Arrowgrass Capital Partners and CR Intrinsic Investors LLC.Country: USASector: Petroleum/Natural Gas/CoalTarget: Plains Exploration & Production CoBuyer: Freeport-McMoRan Copper & Gold IncVendor: CR Intrinsic Investors LLC, Arrowgrass Capital PartnersType: Corporate acquisitionFinancing: Cash & StockStatus: AgreedComment: The deal is worth aroud USD6bn, according to Reuters.

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Publication:M & A Navigator
Date:May 20, 2013
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