UPDATE: Freeport to Buy Plains Exploration & Production and McMoRan Exploration; FCX Near Yr Lows, MMR Up 80%, PXP Up 25%

By MidnightTrader.com Staff,

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Shares of Freeport-McMoRan ( FCX ) are down 14.5% and although around $1 above day low are nearer to 52 week lows after the company confirmed earlier media reports that it will acquire Plains Exploration & Production Company ( PXP ) for approximately $6.9 billion in cash and stock and McMoRan Exploration ( MMR ) for approximately $3.4 billion in cash, or $2.1 billion net of 36% of the MMR interests currently owned by FCX and PXP. Upon closing, MMR shareholders will also receive a distribution of units in a royalty trust which will hold a 5% overriding royalty interest on future production in MMR' existing shallow water ultra-deep properties.

PXP is up 25%, while MMR is up more than 80% and within $1 of 52 week highs.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: FCX , MMR , PXP

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