San Diego, CA -- (SBWIRE) -- 12/20/2012 -- An investor in shares of Mcmoran Exploration Co (NYSE:MMR) filed a lawsuit to halt the proposed takeover of Mcmoran Exploration Co by Freeport-McMoRan Copper & Gold Inc.
Investors who purchased shares of Mcmoran Exploration Co (NYSE:MMR) prior to December 5, 2012, and currently hold any of those NYSE:MMR shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed NYSE:MMR stockholders arising out of the attempt to sell the company too cheaply via an unfair process to Freeport-McMoRan Copper & Gold Inc.
On December 5, 2012, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Plains Exploration & Production Company (NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR) announced that they have signed definitive merger agreements under which Freeport-McMoRan Copper & Gold Inc will acquire Plains Exploration & Production Company for approximately $6.9 billion in cash and stock and Freeport-McMoRan Copper & Gold Inc. will acquire McMoRan Exploration Co. for approximately $3.4 billion in cash. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) has agreed to acquire McMoRan Exploration Co. (NYSE: MMR) for per-share consideration consisting of $14.75 in cash and 1.15 units of a royalty trust, which will hold a 5 percent overriding royalty interest in future production from McMoRan Exploration’s existing ultra-deep exploration properties. The cash consideration of $14.75 per share represents a premium of 74 percent to the McMoRan Exploration Co. closing price on December 4, 2012, and 31 percent to its one-month average price at that date.
However, the plaintiff alleges that the offer is too low and undervalues the company. In fact, NYSE:MMR shares jumped in response to the takeover news to $15.66 per share on Dec. 5, 2012, thus above the cash consideration of the offer. In addition, at least one analyst has set the high target price for NYSE:MMR shares at $21.00 per share. Furthermore, Mcmoran Exploration’s financial performance improved recently. For instance it reported that its annual Revenue rose from $343.38 million in 2010 to $555.41 million in 2011 and its Net Loss of $120.34 million in 2010 declined to $15.97 million in 2011. In addition, shares of Mcmoran Exploration Co (NYSE:MMR) grew from as low as $3.38 per share in March 2009 to as high as $18.55 per share in July 2011.
Furthermore, so the plaintiff, the board of directors all three companies have massive and irreconcilable conflicts of interest. Individual directors stand to make almost $390 million should the proposed transactions be consummated, so the lawsuit.
Those who are current investors in Mcmoran Exploration Co (NYSE:MMR), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego