Freeport-McMoRan Inc. said Friday that it has raised $1
billion through a sale of its shares and disclosed plans to sell another $1
billion, as the beleaguered miner looks to raise cash amid weak commodity
prices.
Shares of Freeport fell 9.7% Friday to $10.88. The stock is
down 68% over the past 12 months.
Freeport-McMoRan, which last month became the target of
activist investor Carl Icahn, said it plans to use the proceeds from the
offerings on things such as the repayment of borrowings and for capital
spending.
Freeport added that it continues to have discussions with
investors about potential investments in its oil-and-gas business.
Separately, after the close Friday, Mr. Icahn said he had
boosted his stake in Freeport to 8.8%. In August, he had reported a stake of
8.5%.
Phoenix-based Freeport announced in August that it would
slash 2016 capital spending by 29%, cut about 10% of its U.S. workforce--or
more than 1,500 jobs--and reduce output. That came on top of plans to cut
spending in its oil-and-gas operations.
Just hours after Freeport announced the cuts, Mr. Icahn
revealed his stake in the company. A securities filing said he would
potentially seek board representation and wants the company to cut spending
levels and executive compensation.
Freeport has struggled recently as global commodity prices
sink amid concerns about increasing global oil supplies and slowing demand from
China, including for copper, a big source of revenue for Freeport.
source: marketwatch.com
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