Stocks: (PD)(FCX)
Huge Greenwich based hedge fund SAC Capital wants to block the Phelps Dodge merger with Freeport McMoran. And, the may have the votes to do it. SAC is about to file that they own over 5% of the shares in the copper company.
SAC thinks Phelps Dodge is worth $150 a share. The stock has been trading around $124.
SAC wants to line up other big holders to try to make the deal richer.
Investor have to wonder how the SAC move makes sense. Phelps Dodge was at $95 before the Freeport bid. To think that the market is so inefficient that the company is actually worth $150 a shares is hard to swallow.
In all probability Phelps Dodge shareholders will ignore SAC, take the money and run.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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