Freeport-McMoRan's (FCX) $9B deal to buy two energy companies has prompted the unusual step from...


Freeport-McMoRan's (FCX) $9B deal to buy two energy companies has prompted the unusual step from shareholders of the acquiring company to go after their own directors for overpaying; more typical are class actions from shareholders of target companies who say the purchase price is too low. Six FCX directors also on MMR's board will reap $131M for their stock in near-bankrupt MMR, according to lawsuits.

From other sites
Comments (7)
  • BlueOkie
    , contributor
    Comments (10260) | Send Message
     
    Where's the SEC when you need it? Something smells with this.
    25 Jan 2013, 06:45 AM Reply Like
  • just sayin'
    , contributor
    Comments (154) | Send Message
     
    A suit is filed.
    Posturing will go on.
    A settlement will be reached.
    Shareholders will get .23 per share.
    Lawyers will get millions.
    Repeat.
    25 Jan 2013, 07:06 AM Reply Like
  • Groundhog666
    , contributor
    Comments (9) | Send Message
     
    just sayin has it right I get letter 2 or 3 times a week regarding lawsuits. Sometimes I get a FEW pennies but when I read the fine print the attorneys got millions. I once got a check for $14.00 and read that the attorneys got $86.00 for getting me $14.00, how much of the shareholders money did the company waste defending. Shakespeare was right "First kill all the attorneys"
    25 Jan 2013, 08:18 AM Reply Like
  • Tridentine
    , contributor
    Comments (106) | Send Message
     
    It seems you can never fill out the form right,no matter what you do.Then they wait another 3 years,then you get a check to buy lunch and coffee that day.Lawyers jet to the Cayman Islands and have drinks with an umbrella under a palm tree.
    25 Jan 2013, 08:43 AM Reply Like
  • minwyhe
    , contributor
    Comments (109) | Send Message
     
    Regardless the payout to the shareholders of which I am one this situation reeks of nepotism and needs to be halted if the CEO is somehow repaying a personal debt to the 2 oil and gas companies. Time for the CEO and Board of Directors to be held accountable for a potential disaster if these mergers proceed without verification of the price being paid.
    25 Jan 2013, 12:40 PM Reply Like
  • just sayin'
    , contributor
    Comments (154) | Send Message
     
    As they mentioned on the Q4 earnings conference call there was an independent board formed to value the acquisitions. If this is legitimate then this lawsuit is not going to get too far. If there are any gaps the lawyers will be sure to find them so they get their cut, and shareholders will get their $.23 per share.
    25 Jan 2013, 02:50 PM Reply Like
  • minwyhe
    , contributor
    Comments (109) | Send Message
     
    Who paid for the independent report? I worked for an oil and gas company in the late 70s and early 80s that went belly up for less than $.23/share. I did internal audits in conjunction with the external auditors and when the board is hand picked by the executives there is no such thing as an independent board. Let the lawyers see what they can find because they will be hiring true independent analysts that will not be beholden to FCX.
    26 Jan 2013, 10:39 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs