Friday, July 04, 2008

Copper briefly over $4; pundits put Freeport in play

A nation-wide strike at copper mines in Peru pushed copper to $4.08 a pound before falling back to $3.95 as workers starting returning to work. Peru's 3rd largest mine, Freeport McMoRan's Cerro Verde pit [right, credit Freeport McMoRan Copper & Gold], joined the strike on Wednesday, which pushed the company's stock down. As a result, stock pundits started discussing a disconnect between the price of copper and Freeport's stock price. As a result, there is speculation that Freeport is an attractive takeover target.

It was just a couple weeks ago that rumors spread about Brazilian based Vale looking at making a bid for Freeport, a story Vale later denied.

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