Freeport, Phelps deal wins vote

Shareholders of Freeport McMoRan Copper and Gold (FCX-N) and Phelps Dodge (PD-N) have voted in favour of the proposed merger of the two companies.

Meetings of both companies provided 98% majorities for the proposal, under which Phelps Dodge shareholders get US$88 in cash and 0.67 of a Freeport share for each Phelps Dodge share. The cash element of the transaction is about US$18 billion.

The deal would bring Freeport’s capitalization to 334 million shares, and in a separate vote Freeport shareholders agreed to a proposal to increase the company’s authorized capital to 700 million shares.