Times Online – SAC Capital Advisors, the $10 billion (\u00c3\u201a\u00c2\u00a35.1 billion) hedge fund run by Steven Cohen, plans to derail Freeport McMoRan Copper & Gold\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s $25.9 billion takeover of Phelps Dodge, whichit said undervalued the American mining company.<\/p>\n
The hedge fund has bought a 5.1 per cent stake in Phelps Dodge and will use it to leverage its opposition to the cash-and-shares deal announced last month, which would create the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s largest publicly traded copper producer.<\/p>\n
SAC is lobbying Phelps Dodge\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s investors to reject the agreed offer of $88 per share plus 0.67 Freeport shares, which values the company at just under $130 a share.<\/p>\n
Instead, Mr Cohen, a highly secretive billionaire art collector and one of the most powerful men on Wall Street, is seeking to extract about $150 a share for the company.<\/p>\n
Mr Cohen is not known for shareholder activism and his involvement with Phelps Dodge is a sign that he may feel the need to be more aggressive in an increasingly competitive investment environment.<\/p>\n
In September, he admitted that, in terms of investments, the best days looked to be behind him. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIt\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s hard to find ideas that aren\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t picked over and harder to get real returns,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d he said at that time.<\/p>\n