PHOENIX (AP) — Freeport-McMoRan Copper & Gold said Monday that its $6.9 billion bid for Plains Exploration & Production was approved by a majority of that company’s shareholders.
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The deal is expected to close on May 31. When that happens, Freeport-McMoRan, currently a mining company, said it will transform into U.S.-based natural resource company with a top global portfolio of mineral assets, oil and gas resources and a growing production profile.
Earlier on Monday, both Freeport-McMoRan and Plains Exploration announced plans to pay special one-time cash dividends when the acquisition closes.
Phoenix-based Freeport-McMoRan said its board plans to declare a supplemental dividend of $1, which would be in addition to its regular quarterly common stock dividend of 31.25 cents. Based on about 1.04 billion outstanding common shares, the supplemental dividend payment will be about $1 billion, the company said.
Meanwhile, executives from both companies agreed to allow Houston-based Plains Exploration to pay a $3 cash dividend to its shareholders when the deal closes.
In afternoon trading, shares of Plains Exploration & Production Co. rose $3.40, or 7 percent, to $48.95, while shares of Freeport-McMoRan Copper & Gold Inc. fell 6 cents to $32.62.
