The consolidation in the mining sector continues with
news
of
Freeport-McMoRan Copper & Gold Inc (NYSE:FCX)
making a US$26 billion cash and stock bid for copper giant
Phelps Dodge (NYSE: PD)
.
Phelps Dodge stock closed at US$120.47 which represents 26% increase to yesterdays close.
Following all of these developments can be a little difficult with Companhia Vale do Rio Doce (CVRD) recently acquiring Inco and Swiss-based Xstrata Plc succsefully taking over Falconbridge.
Both boards have unanimously approved the bid, however there may be a counter bid with rumours that Rio Tinto may enter the fray.
Although copper prices dropped again Freeport Chief Executive Officer, Richard Adkerson was quoted saying that the rally in copper will continue and that inventories, while up in the past year, are well below historical levels.