Bernstein Liebhard LLP Announces Investigation Of Freeport-McMoRan’s Acquisition of Plains Exploration & Production Company and McMoRan Exploration Co.

December 06, 2012

Bernstein Liebhard LLP is investigating whether the Board of Directors of Freeport-McMoRan Copper & Gold Inc. (“Freeport”) (NYSE: FCX) breached its fiduciary duty to its shareholders in agreeing to buy Plains Exploration & Production Company (“Plains”) (NYSE: PXP) and McMoRan Exploration Co. (“MMR”) (collectively, the “Acquisitions”).

Under the terms of the agreements:  (i) Plains shareholders will receive 0.6531 shares of Freeport common stock and $25.00 in cash, equivalent to total consideration of $50.00 per Plains share, based on the closing price of Freeport stock on December 4, 2012; and (ii) MMR shareholders will receive $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 MMR’s existing ultra-deep exploration properties for each share they own.

The investigation is focused on whether (i) the Freeport board is overpaying in connection with the Acquisitions; (ii) the process by which the Freeport board considered and approved the transactions; and (iii) possible conflicts of interest concerning (a) Freeport’s Chairman of the Board James Moffett, who is also co-Chairman of MMR; and (b) Plains’ Chairman of the Board, James Flores, who also sits on MMR’s Board.

If you are interested in discussing your rights as a Freeport stockholder, with no obligation or cost to you, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.

Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients.  It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last ten years.