--Freeport-McMoRan won't boost offer for Plains
--Freeport shares have declined since the deal was unveiled
--Delaware court rules in favor of Plains in shareholder
dispute
(Adds details about shareholder lawsuit.)
By Melodie Warner
Freeport-McMoRan Copper & Gold Inc. (FCX) said it won't
increase its offer for Plains Exploration & Production Co.
(PXP) as both companies reiterated their support of the roughly
$6.9 billion cash and stock deal.
Freeport-McMoRan agreed in December to pay the cash-and-stock
equivalent of $50 a share for Plains Exploration while also
unveiling plans to acquire McMoRan Exploration Co. (MMR) for $3.4
billion in cash.
Freeport-McMoRan's intentions to acquire the two oil explorers
came under fire from investors who say the tie-up is riddled with
conflicts of interest as six directors will have overlapping roles
at Freeport and McMoRan. At the same time, Freeport shares have
declined sharply since the offer was unveiled in December, driving
speculation the deal might be boosted.
Plains Exploration said Thursday it continues to believe the
transaction is in the best interests of its stockholders.
Plains later said it received a favorable ruling Thursday in a
shareholder lawsuit that aimed to stop the deal. The Delaware court
ruled the plaintiffs didn't established a reasonable probability of
success on the merits of their claim the Plains board breached its
fiduciary duties in connection with the proposed deal and denied
their motion for a preliminary injunction.
A special shareholders meeting is scheduled for May 20.
Plains Exploration shares closed down 3.4% at $45.49, while
Freeport-McMoRan shares closed up 0.7% to $32.62.
Write to Melodie Warner at melodie.warner@dowjones.com
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