The CHRISMUKKAH Data Dump

[riverbabe]

I had PD in my Motley Fool CAPS Portfolio. I "sold" it when the announcement was made, then bought the company who was acquiring them, FXS. Do you have an opinion on FXS?

Tim, I know very little about FCX, sorry. But the acquisition just might not go through. Check out this link:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4AAF2BD2%2DC3B0%2D427C%2D9FFA%2D9D30C8B772C0%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

River

[mimo_100]

Tim, I know very little about FCX, sorry. But the acquisition just might not go through. Check out this link:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4AAF2BD2%2DC3B0%2D427C%2D9FFA%2D9D30C8B772C0%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

River

It appears from the article that the dissenting funds only hold aboout 15% of the outstanding stock. Big deal. If the rest of the stockholders accept the offer, the best the funds can hope for is a seat or two on the board.
What advantage is there for the funds to fight the takeover?

[riverbabe]

It appears from the article that the dissenting funds only hold aboout 15% of the outstanding stock. Big deal. If the rest of the stockholders accept the offer, the best the funds can hope for is a seat or two on the board.
What advantage is there for the funds to fight the takeover?

Well, they're looking for a higher bid. Depends on their powers of persuasion and their inside contacts and influence with other potential bidders? Should be interesting.

[mimo_100]

Well, they're looking for a higher bid. Depends on their powers of persuasion and their inside contacts and influence with other potential bidders? Should be interesting.

The stock closed yesterday (12/13) at $122.65. According to the article, the buyout computes to $126.46 per share. In the old days, if the good 'ole boy insiders had knowledge that a new, higher bid was in the works, the closing price would be very close to the buyout price (i.e., PD should be trading somewhere around $125+ in order for the arbitragers to be interested). The market is telling me that there is no new offer in the works right now.

[riverbabe]

The stock closed yesterday (12/13) at $122.65. According to the article, the buyout computes to $126.46 per share. In the old days, if the good 'ole boy insiders had knowledge that a new, higher bid was in the works, the closing price would be very close to the buyout price (i.e., PD should be trading somewhere around $125+ in order for the arbitragers to be interested). The market is telling me that there is no new offer in the works right now.

Tim, not to belabor this, but here is another link, a little older.

http://yahoo.businessweek.com/investor/content/nov2006/pi20061120_054468.htm

Remember, the deal involves $88 in cash + 0.67 FCX share. This means that that the PD price is now tracking with the 0.67 FCX share value, which has declined quite a bit. This might be a reason that PD is not at the original value placed on the deal in that snapshot of time. Did you see what happened to the EZM share price after its buyout offer that, if I recall, was an all stock deal? It initially went down, tracking with LMC, but then skyrocketed just before the deal was consumated (sp?). Unfortunately, I sold EZM too soon! River

[mimo_100]

Tim, not to belabor this, but here is another link, a little older.

http://yahoo.businessweek.com/investor/content/nov2006/pi20061120_054468.htm

Remember, the deal involves $88 in cash + 0.67 FCX share. This means that that the PD price is now tracking with the 0.67 FCX share value, which has declined quite a bit. This might be a reason that PD is not at the original value placed on the deal in that snapshot of time. Did you see what happened to the EZM share price after its buyout offer that, if I recall, was an all stock deal? It initially went down, tracking with LMC, but then skyrocketed just before the deal was consumated (sp?). Unfortunately, I sold EZM too soon! River

You are correct. With FCX at 59.19 the deal is worth over $127 per share.
The April $125 Calls are around $7 with the current price of $122.98. Interesting.

[riverbabe]

Pd/fcx

Tim, did you see this? Possible takeover of FCX!

http://www.theglobeandmail.com/servlet/story/RTGAM.20061215.wbarrick1215/BNStory/Business/?page=rss&id=RTGAM.20061215.wbarrick1215

riverbabe