Mcmoran Exploration Co (NYSE:MMR) Stockholder Files Lawsuit to Halt by Freeport-McMoRan Copper & Gold Inc.

A lawsuit was filed by an investor in shares of Mcmoran Exploration Co (NYSE:MMR) in effort to block the proposed takeover and NYSE:MMR stockholders should contact the Shareholders Foundation.

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San Diego, CA -- (ReleaseWire) -- 12/20/2012 --An investor in shares of Mcmoran Exploration Co (NYSE:MMR) filed a lawsuit to halt the proposed takeover of Mcmoran Exploration Co by Freeport-McMoRan Copper & Gold Inc.

Investors who purchased shares of Mcmoran Exploration Co (NYSE:MMR) prior to December 5, 2012, and currently hold any of those NYSE:MMR shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed NYSE:MMR stockholders arising out of the attempt to sell the company too cheaply via an unfair process to Freeport-McMoRan Copper & Gold Inc.

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 Exploration’s 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, the plaintiff alleges that the offer is too low and undervalues the company. In fact, 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 Exploration’s 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.

Furthermore, so the plaintiff, the board of directors all three companies have massive and irreconcilable conflicts of interest. Individual directors stand to make almost $390 million should the proposed transactions be consummated, so the lawsuit.

Those who are current investors in Mcmoran Exploration Co (NYSE:MMR), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

Media Relations Contact

Joelle Day
Media and Client Relations Manager
Shareholders Foundation, Inc.
858-779-1554
http://www.ShareholdersFoundation.com

View this press release online at: http://rwire.com/189850