Icahn targets struggling miner Freeport-McMoran with 8.5 percent stake

(Reuters) - Activist investor Carl Icahn disclosed an 8.5 percent stake in miner Freeport-McMoran Inc, saying the company was undervalued and needed to address several corporate governance and capital issues.

In a filing with the U.S. Securities and Exchange Commission, the billionaire investor said he intends to speak with Freeport's management and board and may seek board representation.

Icahn also said in the filing that he also plans to discuss "executive compensation practices and capital structure as well as curtailment of the Issuer's high-cost production operations."

The disclosure came on the same day that Freeport said it would slash its mining budget by 25 percent and cut 10 percent of its U.S. mine staff, as the miner and energy producer suffers through a slump in copper prices.

Freeport's shares have plunged nearly 60 percent this year.

(Reporting by Michael Flaherty; Editing by Bernard Orr)

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