Phelps Dodge - Freeport

Phelps Dodge Corporation (PD)
Freeport-McMoRan Copper & Gold Inc. (FCX)
$25.9B Cash-Stock Merger

Summary

Creates world's largest publicly-traded copper company

$126.46 per PD share; $25.9B total

$88.00 plus 0.67 FCX share, per PD share
70% cash, 30% stock
PD news - stock chart FCX news stock chart

PD's market cap is $24.9B; FCX's is only $11.2B
PD shareholders will own 38% of combined company
JPMorgan - Merrill Lynch provided financing commitments to fund cash portion of merger consideration

Announced 11.19.06

Closed 3.19.07

Advisors

Financial

FCX : JP Morgan / Merrill Lynch
PD : Citigroup / Morgan Stanley

Legal

FCX : Davis Polk / Jones Walker
PD : Debevoise

Merger Agreement Hyperlinked

General

EDGAR filing
Hyperlinked version
Detailed hyperlinked index follows

Article 1 Definitions

1.01 Definitions
1.02 Other Definitional and Interpretative Provisions

Article 2 The Merger

2.01 The Merger
2.02 Conversion of Shares
2.03 Surrender and Payment
2.04 Stock Options
2.05 Adjustments
2.06 Fractional Shares
2.07 Withholding Rights
2.08 Lost Certificates

Article 3 The Surviving Corporation

3.01 Certificate of Incorporation
3.02 Bylaws
3.03 Directors and Officers

Article 4 Company Reps

4.01 Corporate Existence and Power
4.02 Corporate Authorization
4.03 Governmental Authorization
4.04 Non-contravention
4.05 Capitalization
4.06 Subsidiaries
4.07 Sec Filings and the Sarbanes-Oxley Act
4.08 Financial Statements
4.09 Disclosure Documents
4.10 Absence of Certain Changes
4.11 No Undisclosed Material Liabilities
4.12 Compliance with Laws and Court Orders; Permits
4.13 Litigation
4.14 Finders Fees
4.15 Opinion of Financial Advisor
4.16 Taxes
4.17 Employee Benefit Plans
4.18 Environmental Matters
4.19 Agreements, Contacts and Commitments
4.20 Property and Title
4.21 Mineral Reserves and Resources
4.22 Operational Matters
4.23 Insurance
4.24 Intellectual Property
4.25 Sale of Certain Subsidiary Shares
4.26 Antitakeover Statutes and Rights Agreement

Article 5 Parent Reps

5.01 Corporate Existence and Power
5.02 Corporate Authorization
5.03 Governmental Authorization
5.04 Non-contravention
5.05 Capitalization
5.06 Subsidiaries
5.07 Sec Filings and the Sarbanes-Oxley Act
5.08 Financial Statements
5.09 Disclosure Documents
5.10 Absence of Certain Changes
5.11 No Undisclosed Material Liabilities
5.12 Compliance With Laws and Court Orders; Permits
5.13 Litigation
5.14 Finders Fees
5.15 Opinion of Financial Advisor
5.16 Taxes
5.17 Employee Benefit Plans
5.18 Environmental Matters
5.19 Agreements, Contacts and Commitments
5.20 Property and Title
5.21 Mineral Reserves and Resources
5.22 Operational Matters
5.23 Insurance
5.24 Intellectual Property
5.25 Aggregate Cash Consideration
5.26 Contracts of Work
5.27 Sale of Certain Subsidiary Shares

Article 6 Covenants of the Company

6.01 Conduct of the Company
6.02 Tax Matters
6.03 Voting of Parent Stock
6.04 Company Employee Plans

Article 7 Covenants of Parent

7.01 Conduct of Parent
7.02 Obligations of Merger Subsidiary
7.03 Voting of Shares
7.04 Director and officer Liability
7.05 Stock Exchange Listing
7.06 Employee Matters
7.07 Certain Corporate Governance Matters

Article 8 Covenants of Parent and the Company

8.01 Reasonable Best Efforts
8.02 Certain Filings
8.03 Joint Proxy Statement; Registration Statement
8.04 Company Shareholder Meeting
8.05 Parent Stockholder Meeting
8.06 No Solicitation; Opportunity to Match
8.07 Public Announcements
8.08 Further Assurances
8.09 Access to Information
8.10 Notices of Certain Events
8.11 Affiliates
8.12 Section 16 Matters
8.13 Control of Operations

Article 9 Conditions to the Merger

9.01 Each Party
9.02 Parent and Merger Subsidiary
9.03 Company

Article 10 Termination

10.01 Termination
10.02 Effect of Termination

Article 11 Miscellaneous

11.01 Notices
11.02 Survival of Representations and Warranties
11.03 Amendments and Waivers
11.04 Fees and Expenses
11.05 Disclosure Letters
11.06 Binding Effect; Benefit; Assignment
11.07 Specific Performance
11.08 Governing Law
11.09 Jurisdiction
11.10 Waiver of Jury Trial
11.11 No Personal Liability
11.12 Counterparts; Effectiveness
11.13 Entire Agreement
11.14 Severability

Other Agreements

Rights plan

Proxy Solicitation

Definitive proxy statement 2.12.07

Form S-4 Filings

Amendment #2 2.12.07

Amendment #1 1.18.07

Form S-4 12.11.06

Deal Protection

No shop covenant

Merger agreement §8.6
Proxy statement disclosure scroll to page 72

Break-up fee

$375mm, plus out-of-pocket expenses
Agreement §10.2
Proxy statement disclosure scroll to page 76

Regulatory Approvals

HSR Act

Merger agreement §8.1
Proxy statement disclosure

Fairness Opinion

Fairness opinions - Freeport-McMoRan / Phelps Dodge

Tax Matters

Disclosure

Proxy statement disclosure

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