Activist investor, Carl Icahn, has disclosed a stake of 88 million shares in Freeport-McMoRan, mining and oil group. Icahn said he wants to talk to the company about its capital spending and possible cuts in production.
Freeport-McMoran has suffered drop in commodities prices, including an 18 percent dip in copper in 2015. The company said on Thursday, it would cut its 2016 capital expenditure by 25 percent, or $700 million, as part of a previously announced review of operations.
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The mining company’s stock spiked 28 percent during the regular session, before Icahn’s 8.5 percent stake became public. It added 20 percent in extended trading. CNBC.
In a filing to the Securities and Exchange Commission, Mr Icahn said that as of August 26, he had not yet talked to Freeport’s management, but he intended to raise issues including capital expenditure, executive pay, capital structure and curtailing “high-cost production”.
Freeport said it welcomed “constructive input towards our common goal of enhancing shareholder value”. The company added that its spending cuts were the results of a previously announced review of operating plans, suggesting they had not been announced in response to Mr Icahn’s stakebuilding.