...1. Introduction Freeport-McMoRan also called Freeport or FCX in New York Stock Exchange, operates in exploration, mining and refining of ore containing copper, gold and silver. Freeport’s synergy in creating the world’s largest publicly traded natural resources was initiated through the merger and acquisition (M&A) transactions. Investment banks, J.P. Morgan and Merrill Lynch play a key role as a financial assistance to advice Freeport in the merger and acquisition transactions. On November 19, 2006, media announced that Phelps Dodge (PD) is to be acquired by Freeport. This opportunity will eventually benefit Freeport in the future growth, given that PD is known as world’s leading producer of molybdenum-based chemicals and continuous-cast copper rod. In the case study of Freeport-McMoRan in financing an acquisition, several questions will be discussed including the events, which lead to the merger transaction following the analysis of operating and financial performance as well as the involvement of J.P. Morgan and Merrill Lynch prior to the acquisition announcement. 2. Question 1 a. During the year of 2006, a tumultuous series of events occurred before the acquisition of Phelps Dodge by Freeport-McMoRan on November 19, 2006, concerning M&A landscape in the US mining industry. The events emerge from the implementation of a poison pill, which hostile and non-hostile companies fight to win the M&A transaction of the target company. Phelps agreed to acquire...
Words: 2740 - Pages: 11
...FREEPORT 1. Why do you think JPMorgan and Merrill Lynch were selected to underwrite and book-run all $23.3 billion in financings (all debt, common stock, and convertible), instead of sharing the underwriting with additional firms? JPMorgan and Merrill Lynch were selected to underwrite and book-run all of the financings because together they committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. This created significant risk by aligning the interests of FCX and the two firms in terms of placing the debt and credit with other banks and institutional investors. Because this commitment was critical in facilitating the M&A transaction, FCX gave all of the book-running and M&A business to these two firms. JPMorgan and Merrill Lynch had guided FCX through the M&A pre-deal conception and the activity targeting Phelps Dodge. In addition, both firms held high positions in league tables for financings and M&A and had existing long-term relationships with FCX’s management. But the key to their fee bonanza was the risky commitment to provide bridge loans if placement was not possible in the capital markets. 2. What was the role of the leveraged finance group at JPMorgan and why was its involvement important to the acquisition? The leveraged finance group was responsible for making the bridge financing commitment on behalf of JPMorgan that allowed FCX to make a firm bid for Phelps Dodge. To ensure that...
Words: 1307 - Pages: 6
...outdoor supplies company with the foundation of his newly created Maine Hunting Shoe and the idea that people like him would like the same things as him. The business started in Freeport, Maine, a small shoe factory town, as a small retail store and catalogue in 1917, and continued to earn a name for itself and grow as the years went on. It is said that L.L. grew a “loyal following” (pg.12) and people were interested with what was going to come out of his company. L.L. accomplished his goals and eventually passed the company down to his son and then his grandson. This book is a story by his grandson, Leon Gorman, about the start of the company, his journey through it, and the company present day. Although L.L. Bean, a well-known brand now, has gone through many ups and down since it’s small town origin, it has still kept the gold rule of its founder, which has helped it remain successful. Leon Gorman, L.L. Bean’s grandson, and graduate from Bowdoin University, begins his story about his family enterprise by telling us how he was introduced into the business and the factors that led to the success of the business. Gorman was honorably discharged from the United States Navy in May of 1960 and wanted to find new work right away. It was suggested to him to visit his grandfather’s small shop in Freeport, Maine to find a job. Having military experience and a college degree his grandfather hired him, although it was told, “he’d never turn down a family member looking for work” (pg...
Words: 1800 - Pages: 8
...Profile – Mr. Donald Dean R.A Leading Grand Bahama architect, Mr. Donald Dean came to Freeport Grand Bahama in the early 19.. from Nassau where he was born. As a part of the staff in the planning department at the Grand Bahama Port Authority, Mr. Dean was instrumental in the early stages of development in Freeport. In 19…. He went on the open his own firm The Architects Incorporated offering full architectural, planning, and interior design services. Winner of the …..silver …. for his proposal for a new Supreme Court Complex in Nassau, Mr. Dean’s signature buildings can be seen lining the prestigious Well Mall Drive leading from the airport through the center of Freeport’s business district. Starting with The Imperial Life Financial Building in 19.. , he went on to design both The Family Guardian Building and The Star General Insurance Buildings, as well as the new Federal Financial Center where his firm is located. The new impressive Police Complex that now graces the Mall in Freeport is also one of Mr. Dean’s landmark structures. Apart from his many commercial projects of which just several were mentioned, The Architects Incorporated has also designed many of the prestigious homes that are nestled away in some of Freeport’s best neighborhoods. A civically minded firm, The Architects Incorporated, is ever willing to help needy and important causes. Their services have been donated on several occasions, namely to the new Grand Bahama Sports Complex, the newly proposed...
Words: 298 - Pages: 2
...1. JPMorgan and Merrill Lynch were selected to underwrite and book-run all of the financings because together they committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. This created significant risk by aligning the interests of FCX and the two firms in terms of placing the debt and credit with other banks and institutional investors. Because this commitment was critical in facilitating the M&A transaction, FCX gave all of the book-running and M&A business to these two firms. JPMorgan and Merrill Lynch had guided FCX through the M&A pre-deal conception and the activity targeting Phelps Dodge. In addition, both firms held high positions in league tables for financings and M&A and had existing long-term relationships with FCX’s management. But the key to their fee bonanza was the risky commitment to provide bridge loans if placement was not possible in the capital markets. 2. The leveraged finance group was responsible for making the bridge financing commitment on behalf of JPMorgan that allowed FCX to make a firm bid for Phelps Dodge. To ensure that the M&A transaction could be completed, it was essential to line up the acquisition financing. This leveraged financing was particularly important because FCX was taking on so much new debt and was acquiring a company larger than itself. The leveraged finance group had to analyze the new capital structure, the impact on credit ratings...
Words: 1138 - Pages: 5
...“Knowing your Audience” By: Nicholas Findlow August 16, 2013 When reading about an accident or and incident you have to think about everyone that is involved and how that may affect them. Whether it be towards the family or the company that it effects. It may be difficult to explain everything because when you do have to explain these things you will not have all the answers. When reading “Miners Trapped At Giant Freeport Mine in Papua” and “Over 30 Workers Trapped After Chilean Copper Mine” it was rather difficult for me to think of how I would personally address the family or the company about these situations. First off I think that I would speak with the families individually because I understand that each case would be different. Such as going to there homes, sitting them down and telling them that we are doing our best to get to the trapped miners and safely bring them home. The biggest thing that I feel we would offer to the families is support and up to day information on the process of rescuing these people. “ I am deeply saddened to have to come and speak with you today. At 1:00 p.m. this afternoon the eastern tunnel collapsed and your husband was one of the men trapped by the collapsed tunnel. We are doing everything we can to safely rescue him and the other men trapped. We completely understand your concern and are here to support you during this difficult time. If there is anything...
Words: 778 - Pages: 4
...Freeport-McMoran Case Study The environment is something humans should always be concerned about. In the case study involving Freeport-McMoran strip mining, the environment is the main concern. The environmental concern is the central ethical issue to be resolved because in the long term, it starts to influence everyone around the world negatively. If one company is allowed to destroy mountains and the environment and make millions, more companies will likely jump on that same ship. When more and more companies start to make money at the expense of the environment, more people become in the same situation as the Amungme and Kamoro. On top of that, our food sources will dwindle and our water contaminated. If our environment is continually destroyed, other resources will be destroyed too. Ex. Copper may be abundant, but with all the copper mining going on, lumber is now scarce. My solution to this problem would be by following Eduardo Nebot, a robotics specialist at the University of Sydney. . His paper mainly consists of a safe alternative to strip mining using advanced robotic technology, which would be a feasible, safer and cost effective strategy. What he also found out was that --mining deposits are becoming increasing smaller, and destroying the surroundings for a small amount would waste time and not justify the consequences. His robotics could identify how big or small the deposits are. Strip mining can have sever effects on everything around the site. According to the...
Words: 1103 - Pages: 5
...SESSION 9 PRE-WORK 1000 words max in total, although some questions may require more than 100 words (question 5). P.C: “Freeport-McMoRan: financing an acquisition” 1/What is a poison pill? What is a white knight? A poison pill is a shareholders’ right plan approved by the Board of Directors of a corporation to discourage hostile takeovers. There are two types of poison pills: a) Flip in: shareholders have the right to buy more shares at a discount, if a bidder buys a certain percentage of the company's shares. This action dilutes the shares of the bidder and makes the takeover more expensive. b) Flip over: allow shareholders to buy the acquirer's shares at a discounted price after the merger. Poison pills are controversial because they force the bidder to negotiate with the Board instead of negotiating directly with the shareholders. A white knight is a company that makes an offer to acquire another company that is suffering a hostile takeover (target company), in a friendly takeover that suits the needs of the target company and its board. 2/Page 2 of the case:”In spite of the lower price, analysts suggested that investors would favour the all-cash bid of CVRD at the time “. Why would investors favour a lower bid? Because the all-cash bid would "allow Inco shareholders to realize upfront in cash Inco's profitable growth potential without incurring the risk of that such potential will not be realized," as CVRD said in...
Words: 559 - Pages: 3
...SBFZ ICT PROFILE (For Updating) SUBIC BAY FREEPORT ZONE: ICT HUB LOCATION PROFILE Page 1 SITUATIONAL ANALYSIS (INTERNAL LANDSCAPE) ANALYSIS: CURRENT PRODUCT - SUBIC BAY SPECIAL ECONOMIC AND FREEPORT ZONE Product Features, Benefits, and Appeals Subic Bay Freeport Zone (SBFZ) has a total area of 67, 452 hectares both land and water (water area has a total of 12,350 hectares and a land area of 55, 102 hectares as defined by Proclamation No. 532 of the Subic Special Economic and Freeport Zone SSEFZ) Metes and Bound. It is comprised by the City of Olongapo, Subic Town, San Antonio in Zambales and the former US Naval Reservation. The earliest predecessor to the USFAC Subic Bay was an un finished Spanish Naval Station, acquired by the U. S. in 1898, following the Spanish American War. During World War II, most of the original station was destroyed by American rear guard action and aircraft bombing attacks. Following World War II and the achievement of Philippine independence, a decision was made to establish a U. S. Naval Base at Subic Bay. Substantial construction efforts were begun and accelerated during the Korean Conflict, resulting in the establishment of the U. S. Naval Base, Subic Bay, in 1954. Much of the area now occupied by the Freeport was previously occupied by the City of Olongapo. At that time, the Commander of the Naval Base was also in control of the City of Olongapo. During the Vietnam Conflict, construction of the facilities was again accelerated, and...
Words: 8493 - Pages: 34
...VII. Corporate governance in foreign investments, privatization and the significance of insolvency regimes 7.4 Grand corruption involving privatization Submitted by: Ma. Jolina M. Boloso BSA 3-1 Submitted to: Prof. Carolina Guerrero May 10, 2014 Table of Contents I. Corruption and privatization ………………………………………………. 2 What structure help prevent corruption …………………………………. 3 II. Examples of Grand corruption involving privatization MWSS …………………………………………………………………………………. 4 * Problems and rationale for MWSS privatization ……………… 4 * Privatization of MWSS ………………………………………………….. 5 * MWSS issues and controversies …………………………………….. 6 Expo Filipino ………………………………………………………………….……. 8 * Issue ..…………………………………………………………………..…….. 8 * Reopening …………………………………………………………………… 9 III. References ………………………………………………………………………. 10 I. Corruption and privatization Corruption has become a major international concern. The topic of international conferences, policy forums and ministerial speeches, it is also the subject of a recent OECD Convention and the focus of an international non-governmental organization, Transparency International. However, the incidence of large-scale corruption is closely connected with contracting-out, concessions, and privatization, where multinationals based in OECD countries stand to gain a lot of profitable business. The encouragement of privatization by the World Bank, and the economic benefit to OECD multinationals from...
Words: 2294 - Pages: 10
...Typically 30-45 working days if not in stock. 4. Limited Warranty as provided by Manufacturer. Price is based on components shipped via ocean freight. Rush order may require additional airfreight charges. Should you have question, please feel free to contact us at 047 252 2637 or 09088772832. This proposal shall remain valid for a period of not more than 30 days from the date herein. Sincerely you Noted by: Conforme: Luccie Tura lba E-MAIL: MAKEITHAPPEN@BANDASOLAR.COM PO BOX 128 • SUBIC BAY FREEPORT ZONE • ZAMBALES. PHILIPPINES • 2 2 2 2 SPECIFICATIONS 90w Cobra Head Street Light Input Voltage 85-265Vac 60Hz Lumen 10 400-11 200lms Life expectancy: 50.000 hrs Color W'WW/CW 'ROI 3 9 Months 90W LED vs 350W HPS , `ROI for this product is based on 24hrday use power savings only additional maintinance savings and shorter hours day usage can increase or decrease the ROI depending on requirements E-MAIL - MAKEITHAPPEN@BANDASOLAR COM PO BOX 128 • SUBIC BAY FREEPORT ZONE • ZAMBALES, PHILIPPINES • 2222...
Words: 252 - Pages: 2
...The Freeport News One of the roles of a newspaper is to inform and update people on the happenings in their community, country and around the world. The front page of a newspaper is very important in facilitating this. It is through the front page that people may decide to purchase or not purchase this media. It does this by trying to grab readers’ attention; whether through a shocking headline, usage of large bold prints, mixture of colours and pictures accompanying articles. For this assignment we evaluated the articles on the front page of a newspaper, The Freeport News, and conducted a survey among readers of this newspaper. From the survey we found that even though The Freeport News is a daily newspaper the majority of its readers view it monthly (37%), weekly (33%) and biweekly (20%) while only ten percent read it daily. In addition, 70% of them do not read the entire issue but only some of it and only 50% of them read it to be informed. Some of the other reasons for reading this newspaper were to be aware of local advertisements and sales (13%) and to be entertained (3%). Also, the majority of the readers (90%) feel that the articles in this newspaper are clear, easy to follow and do not show any political biases. Furthermore, they feel this media does an effective job of covering the most current local and national news; however, most of the readers (70%) feel it needs to improve on international news coverage. The Freeport News edition for September 19th 2013 front...
Words: 877 - Pages: 4
...Foreword A history would by its nature, inevitably have gaps and missions with regards to local history. We can continue the work began by the older generation by filling in the gaps and omissions and presenting alternative viewpoints that reflect more accurately the complex nature of our collective history. We are all familiar with the souvenir programs generated by countless town fiestas and similar community celebrations that almost always contain a short account of the town’s history but we always fail to produce something to be of lasting value. One of the hazards of writing a historical document destined to be used as a future reference which may draw special interest from the readers and may have a wide circulation is the gathering of accurate and reliable information. It is surely one of the reasons why Castillejos has no written document about its own local history for no one has shown their intention to write something which is of utmost importance to unfold significant local stories and to enrich awareness and consciousness about the origin and roots of a true blooded citizen of Castillejos. According to Dr. Jose Rizal, “In order to understand the destiny of a people, it is necessary to open the book of its past.” Now is the opportune time to look back to be able to know ourselves better, the essence of our existence today and understand the reasons of what and how we become today. For any inaccuracy and misinterpretation...
Words: 4212 - Pages: 17
...Evaluate the extent to which the activities of multinationals such as BAT or Freeport can be controlled. (10 marks) Multinationals can be controlled by pressure groups, social media or government control and regulation. Pressure groups can have a massive impact on controlling the actions of multinationals. For example, ASH, an anti-smoking pressure group has put a lot of pressure on BAT to change their ethics and practises regarding poor pay and working conditions and exploitation of young potential consumers. Pressure groups can affect consumers and their opinion of a certain multinational. If many consumers were unhappy about how Freeport has been evicting local people from ancestral lands or how low Nigerian producers were paid for their tobacco, they may decide to stop buying tobacco products from BAT, which could potentially impact BAT’s profits. This may lead them to change their practices, leading to change for these Nigerian producers. This is because consumers do have a lot of purchasing power which they can use to force multinationals to make a change. However, as BAT have taken over so many tobacco companies, consumers may not realise that BAT are involved with certain companies. So if they did stop buying their tobacco products directly from BAT and switch to another company, they may buy from a company under the control of BAT. As tobacco products are considered inelastic, there is a high chance that consumers will end up still purchasing their products from BAT...
Words: 653 - Pages: 3
...Zambales being only 3 hours away from Manila, Pundaquit however, is another 30 to 60 minutes away from the first city which is Olongapo. Traveling to Pundaquit is not as hard as it looks, compared to traveling towards the beaches South of Manila. The North has all the scenic roads and interesting people you’ll see along the way. That’s enough reason to make daytrippers and backpackers feel more relaxed, laid back and away from the rat race and hustle and bustle of Metro Manila. TRAVELING VIA PRIVATE VEHICLE: Coming from Manila, take the North Luzon Expressway or NLEX and take the San Fernando Exit then head southwest the road to Olongapo. Before you reach Olongapo town proper, there is a shortcut route that will take you inside Subic Base Metropolitan Authority or SBMA which you may want to take to bypass the traffic and a few winding roads pass Olongapo’s busy street. As soon as you exit SBMA, head northwest and you will pass by the towns of Castillejos, San Marcelino and then the Town of San Antonio. Once you are in San Antonio, it’s advised to ask the locals for the way to Pundaquit as it’s a bit complicated having no street signs in the area. Locals will be glad to answer you for directions. A fool proof way to ensure you won’t get lost, hire one of the many tricycle drivers to take you there on a convoy. If you made your reservations, mention the name of the resort beforehand so they know exactly where you are going. TRAVELING VIA PUBLIC TRANSPORT: The best and most...
Words: 508 - Pages: 3
