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McMoRan Exploration (MMR) now up 50% premarket as the WSJ says Freeport McMoRan's...

McMoRan Exploration (MMR) now up 50% premarket as the WSJ says Freeport McMoRan's acquisition could be valued at close to $20B and may be announced today. Plains Exploration (PXP) - also maybe a target - gains 25%. FCX -9.3% premarket.
Comments (6)
  • dabber
    , contributor
    Comments (3) | Send Message
     
    Let's get this straight. Adkerson (FCX CEO and MMR Director) lends Moffett (MMR Chairman and FCX Chairman) the money to drill a billion dollar ultradeep well on a new and untested theory about deep gas. Why? Is it a coincidence Adkerson was made CEO shortly before the loan? The well is now plugged with barite and the MMR stock price plunges. So, FCX decides to double down and buy MMR, boosting its price and depressing FCX's price. Looks like a multibillion transfer of FCX shareholder wealth to MMR shareholders. BTW, Moffett and Adkerson don't care because they get paid salaries, stock options, director fees and dividends by BOTH companies. The only losers are the FCX shareholders. Do these corporate boards have any independence or integrity? Does the SEC exist anymore?
    5 Dec 2012, 09:19 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    From a risk-arb point: is FCX now trading at a steep discount? The market seems to think these deals were a 15% hit. Can someone provide the rationale (math).
    5 Dec 2012, 11:24 AM Reply Like
  • TwistTie
    , contributor
    Comments (2476) | Send Message
     
    How can we take advantage of the FCX selloff?

     

    Sell puts?
    5 Dec 2012, 12:23 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    The puts are cheaper than I would expect from the move. I think it is better to buy the stock and play the arb spread, but of course, as I ask above, that spread needs to be quantified.
    5 Dec 2012, 12:29 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Disclosure: I bought FCX shares in the middle of the session and sold puts at the end of the session.
    5 Dec 2012, 03:57 PM Reply Like
  • pbradyus
    , contributor
    Comment (1) | Send Message
     
    Retired UC physics prof - experimental high energy nuclear:

     

    Noticed lots of FCX CALL activity - still like it; will collect more via take-over of my PXP.
    6 Dec 2012, 06:13 AM Reply Like
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