NYSE:MMR Investor Notice: Lawsuit to Halt Buyout of Mcmoran Exploration Co filed
The Shareholders Foundation announced that 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.
New Orleans, Louisiana based McMoRan Exploration Co. is engaged in the exploration, development and production of oil and natural gas in the shallow waters of the Gulf of Mexico and onshore in the Gulf Coast area of the United States.
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