PHOENIX (dpa-AFX) - Freeport-McMoRan Inc. (FCX) is nearing a settlement of more than $100 million to resolve allegations that the mining company's board and executives had conflicts of interest while negotiating the company's $9 billion acquisition of two affiliates that was completed in 2013.
In December 2012, Freeport-McMoRan said it agreed to acquire Plains Exploration & Production for about $6.9 billion in cash and stock and also acquire McMoRan Exploration for a net $2.1 billion. The transactions, which enabled Freeport-McMoRan to add oil and gas assets to its mining portfolio, closed in 2013.
According to the WSJ report, some of Freeport-McMoRan's shareholders had filed a lawsuit alleging that Freeport overpaid for the acquisition of McMoRan Exploration and Plains Exploration.
Shareholders have reportedly alleged the acquisitions were aimed at rescuing a struggling McMoran, in which Freeport as well as its board members and key executives held shares. The three companies reportedly had overlapping board members and ownership stakes.
However, neither Freeport nor its directors or executives are expected to admit wrongdoing as part of a settlement, the WSJ reported.
FCX closed Friday's trading at $26.85, down $2.49 or 8.49 percent on a volume of 21.63 million shares.
Copyright RTT News/dpa-AFX
© 2014 AFX News
