Carl Icahn Increases Freeport Stake
Over the last year Freeport has seen its share price fall by over 70% and it started after the company's costly acquisitions of Plains Exploration & Production and McMoRan Exploration.
With Freeport stock in free fall the company is highly likely to welcome Carl Icahn with open arms. If he wants a board seat Freeport will put up little opposition to that or anything else Icahn might want.
Last week legendary activist investor Carl Icahn disclosed through his Icahn Enterprises (IEP) that he had added to his position in Freeport-McMoRan. Icahn's original purchase price for Freeport averaged $10.29/share during the second quarter. After disclosing his stake, Icahn kept on acquiring shares in Freeport, increasing his stake by 12 million shares or 13% by September 18th. For the additional shares of Freeport, Icahn paid on average $12.05/share.
Investors are overlooking a real problem for Freeport due to Car Icahn's stake in the company. Everyone seems to be overlooking the collapse in cooper price, which is really hurting the company. Investors are focused on what Icahn will do, hoping he will lead a campaign for a spin-off of the company's energy unit. The company's copper mining unit is suffering. Freeport is selling margins compress and earnings falling in many of its copper segments.
Published on Sep 27, 2015By Cody Eustice
Posted in ...Market Commentary