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If you purchased shares of Plains Exploration & Production Company (NYSE:PXP) prior to December 5, 2012, and currently hold any of those NYSE:PXP shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Dec. 17, 2012 (Shareholders Foundation) -- An investor in shares of Plains Exploration & Production Company (NYSE:PXP) filed a lawsuit against the takeover of Plains Exploration & Production Company by Freeport-McMoRan Copper & Gold Inc. at $50 per NYSE:PXP share.
The plaintiff alleges that the defendants breached their fiduciary duties owed NYSE:PXP stockholders arising out of the attempt to sell the company at an unfair price via an unfair process.
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. Under the terms of the proposed transaction Freeport-McMoRan Copper & Gold Inc. has agreed to acquire Plains Exploration & Production Company for per-share consideration consisting of 0.6531 shares of Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) common stock and $25.00 in cash, equivalent to total consideration of $50.00 per Plains Exploration & Production Company (NYSE: PXP) share, based on the closing price of NYSE:FCX stock on December 4, 2012.
However, the plaintiff alleges that the $50offer is unfair to NYSE:PXP stockholders and undervalues the company. Indeed, at least one analyst has set the high target price for NYSE:PXP shares at $78.00. Furthermore, Plains Exploration & Production has performed well for its investors in the past. In fact, its annual Revenue rose from over $1.54 billion in 2010 to over $1.95 billion in 2011 and its Net Income for the respective time periods increased from $103.27 million to $205.28 million. In addition shares of Plains Exploration & Production Company (NYSE:PXP) grew from as low as $15.88 per share in March 2009 to as high as $46.50 per share in February 2012.