Dec. 5, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in Mcmoran Exploration Co (NYSE:MMR) shares was announced concerning whether the offer by Freeport-McMoRan Copper & Gold Inc. to acquire Mcmoran Exploration Co and the takeover process are unfair to investors in NYSE:MMR shares.

The investigation by a law firm concerns whether certain officers and directors of Mcmoran Exploration Co breached their fiduciary duties owed NYSE:MMR investors in connection with the proposed acquisition.

On December 5, 2012 Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Plains Exploration & Production Company (NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR) announced that they have signed definitive merger agreements under which Freeport-McMoRan Copper & Gold Inc will acquire Plains Exploration & Production Company for approximately $6.9 billion in cash and stock and Freeport-McMoRan Copper & Gold Inc. will acquire McMoRan Exploration Co. for approximately $3.4 billion in cash.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) has agreed to acquire McMoRan Exploration Co. (NYSE: MMR) for per-share consideration consisting of $14.75 in cash and 1.15 units of a royalty trust, which will hold a 5 percent overriding royalty interest in future production from McMoRan Explorations existing ultra-deep exploration properties. The cash consideration of $14.75 per share represents a premium of 74 percent to the McMoRan Exploration Co. closing price on December 4, 2012, and 31 percent to its one-month average price at that date.
However, NYSE:MMR shares jumped in response to the takeover news to $15.66 per share on Dec. 5, 2012, thus above the cash consideration of the offer. IN addition, at least one analyst has set the high target price for NYSE:MMR shares at $21.00 per share. Furthermore, Mcmoran Explorations financial performance improved recently. For instance it reported that its annual Revenue rose from $343.38 million in 2010 to $555.41 million in 2011 and its Net Loss of $120.34 million in 2010 declined to $15.97 million in 2011. In addition, shares of Mcmoran Exploration Co (NYSE:MMR) grew from as low as $3.38 per share in March 2009 to as high as $18.55 per share in July 2011.

Therefore, the investigation a law firm concerns whether the proposed transaction is unfair to NYSE:MMR stockholders. Specifically, the investigation focuses on whether the Mcmoran Exploration Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.