Atticus Capital Loads Up on Freeport-McMoRan (FCX) Stock

In an amended 13D filing on Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Atticus Capital LP disclosed that they raised their stake in the company to 7.48% (28,565,673 shares). The firm held 12,774,473 shares and call options on 8,919,500 shares at the quarter ended June 30, 200 (now at 15,336,173 shares and 13,229,500, respectively). The fund has additional long economic exposure to 19,359,974 shares through various arrangements.

In their original filing, Atticus said they "have met with, and may in the future continue to meet with, third parties to encourage them to consider strategic transactions."

Atticus Capital Changes Filing Status on Freeport-McMoRan (FCX) Stake to 13D

In a 13D filing on Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Atticus Capital LP disclosed a 6.4% stake (24,343,973) and noted they changed their filing status from 13G (passive) to 13D (active).

Atticus Capital said, "The Reporting Persons acquired the Shares for investment purposes, and such purchases have been made in the Reporting Persons’ ordinary course of business. The Reporting Persons expect to consider and evaluate on an on-going basis all of their options with respect to the investment in the Company. The Reporting Persons have met with, and may in the future continue to meet with, third parties to encourage them to consider strategic transactions involving the Company that are designed to maximize shareholder value for Company shareholders. In addition, the Reporting Persons may (a) consult with outside advisors to help them formulate their options with regard to their investment in the Company and (b) engage in discussion with management and/or the board of directors of the Company to encourage them to take steps to maximize shareholder value. The Reporting Persons may also pursue other available alternatives in order to maximize the value of the investment in the Company. Such alternatives could include, without limitation, (i) the purchase of additional Shares, options or related derivatives in the open market, in privately negotiated transactions or otherwise and (ii) the sale of all or a portion of the Shares, options or related derivatives now beneficially owned or hereafter acquired by them."

Atticus was the largest shareholder of Phelps Dodge, before Freeport-McMoRan bought the company. In the months leading up to the Phelps Dodge acquisition, Atticus was urging the company to sell itself.

SAC Capital Opposes Phelps Dodge (PD) Merger with Freeport-McMoRan (FCX)

In a 13D filing this morning on Phelps Dodge (NYSE: PD), 5.1% holder (10.3 million shares) Steven A. Cohen / SAC Capital said the merger agreement with Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) undervalues the company and they plan to vote against the proposed transaction.

From the 'Purpose of Transaction' section of the filing:

The Issuer announced on November 19, 2006, that it had entered into a definitive agreement to merge with Freeport-McMoRan Copper & Gold Inc. ("FCX"). The Reporting Persons believe that the terms of the proposed FCX transaction would not provide full and fair value to the Issuer's shareholders and would deprive them of their ability to maximize the return on their investment. The Reporting Persons believe that the proposed FCX transaction offers few, if any, synergies to the combined operation, and would use the Issuer's balance sheet to fund the purchase in what is essentially a public recapitalization that would create disproportionate value for FCX shareholders at the expense of the Issuer's shareholders. In addition, the Reporting Persons believe there is unrecognized long term value that the Issuer's shareholders would forego if they sold their shares at FCX's proposed terms. Accordingly, the Reporting Persons currently intend to vote against the proposed FCX transaction.