Carl Icahn files 13D on Freeport-McMoran (FCX)

August 27, 2015 4:04 PM EDT

(Updated - August 27, 2015 4:08 PM EDT)

After the close of trading Thursday, Carl Icahn filed a 13D on Freeport-McMoran (NYSE: FCX) showing a new 88,000,000 share, or 8.5%, stake in the company.

In the filing, the billionaire hedge fund manager said he plans to have discussions with management and board of directors relating to the company's capital expenditures, executive compensation practices and capital structure as well as curtailment of its high-cost production operations. Mr. Icahn said he has yet to have those conversations.

Freeport acknowledged the new Icahn stake in a statement Thursday evening and said it "maintains an open dialogue with our shareholders and welcomes constructive input toward our common goal of enhancing shareholder value."

The company also pointed to news earlier Thursday that it revised capital and operating plans in response to the recent decline in commodity prices resulting in reduced capital expenditures, lower production levels and lower operating, administrative and exploration costs.

Before today's bounce on the cost cutting measures, shares of FCX had been trading a multi-year lows on plunging commodity prices.

Icahn's filing showed he first started buying the stock in mid-July at around $16. He picked up his buying amid the global market sell-off, acquiring most of his shares at $10/share or below in mid-to-late August.

From the Filing:

The Reporting Persons acquired their positions in the Shares in the belief that the Shares were undervalued. The Reporting Persons intend to have discussions with representatives of the Issuer's management and board of directors relating to the Issuer's capital expenditures, executive compensation practices and capital structure as well as curtailment of the Issuer's high-cost production operations. The Reporting Persons may also seek shareholder board representation and to discuss the size and composition of the board. As of August 26, 2015, the Reporting Persons have not had any discussions with representatives of the Issuer's management or board of directors.

The Reporting Persons may, from time to time and at any time: (i) acquire additional Shares and/or other equity, debt, notes, instruments or other securities (collectively, "Securities") of the Issuer (or its affiliates) in the open market or otherwise; (ii) dispose of any or all of their Securities in the open market or otherwise; or (iii) engage in any hedging or similar transactions with respect to the Securities.



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