By Melodie Warner
Plains Exploration & Production Co.'s (PXP) board declared a
special dividend of $3 a share, which is conditioned upon the oil
company's completed merger with Freeport-McMoRan Copper & Gold
Inc. (FCX).
Plains Exploration shareholders are scheduled to vote on the
deal Monday.
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. But
Freeport said earlier this month it wouldn't increase its offer,
ending speculation the deal might be boosted.
Plains on Monday said the special dividend will be paid
immediately prior to the completion of its merger with
Freeport-McMoRan, which has also approved the payout.
Meanwhile, Freeport-McMoRan's board intends to declare a
supplemental $1 dividend immediately following the closing of its
Plains acquisition.
Freeport-McMoRan also said it plans to complete $1.5 billion in
asset sales from the combined company and will reduce its capital
spending plans.
Plains Exploration shares were trading 6.7% higher at $48.60
premarket while Freeport-McMoRan shares were up 12 cents to
$32.80.
Write to Melodie Warner at melodie.warner@dowjones.com
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