Freeport’s Move Into Energy Sends Stock Tumbling

Bloomberg reported that Freeport-McMoRan Copper & Gold Inc.’s acquisition of Plains Exploration & Production Co. (PXP) and McMoRan Exploration Co. (MMR) in an attempt to move into the energy space, sent their stock tumbling by 16 percent on Tuesday.

As quoted in the market report:

Freeport, which mines in the U.S., Indonesia and Africa, said the deals will help it to keep expanding and that it couldn’t find a suitable copper acquisition. The move was criticized by BlackRock Inc., one of Freeport’s largest investors, and Dan Rohr, an analyst at Morningstar Investment Service, for failing to create any obvious cost savings.

To view the whole Bloomberg report, click here.