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Plains shareholders back Freeport takeover deal.


21 May 2013 - Freeport-McMoRan Copper & Gold Inc (NYSE:FCX) said that the shareholders of oil and gas firm Plains Exploration & Production Co (NYSE:PXP) had approved a deal to be taken over by the US miner.

The transaction, which was previously facing opposition from the targeta[euro](tm)s minority shareholders Arrowgrass Capital Partners and CR Intrinsic Investors LLC, managed to secure a majority of the votes after on Monday FCX and Plains unveiled plans to pay extra dividends to shareholders of USD1.00 (EUR0.78) and USD3.00 per share respectively.

Under the terms of the deal, 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 transaction for approval, although the buyer said it would not increase the consideration as part of the offer.

The transaction, which is worth around USD6bn, according to Reuters, is now seen closing on 31 May.

The combination is expected to create a premier US-based natural resource company, comprising mineral assets, significant oil and gas resources and a growing production profile, the buyer said.Country: USASector: Petroleum/Natural Gas/CoalTarget: Plains Exploration & Production CoBuyer: Freeport-McMoRan Copper & Gold IncVendor: Arrowgrass Capital Partners, CR Intrinsic Investors LLC Type: Corporate acquisitionFinancing: Cash & StockStatus: AgreedComment: The deal is worth aroud USD6bn, according to Reuters.

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Publication:M & A Navigator
Date:May 21, 2013
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