NEW YORK, Nov 21 (Reuters) - Shares in Freeport-McMoRan Copper & Gold Inc. climbed 5 percent on Tuesday amid market speculation that BHP Billiton might be considering a bid for the U.S. mine operator.
The speculation came only two days after Freeport-McMoRan itself agreed to buy much larger Phelps Dodge Corp. for $25.9 billion to create the world's largest publicly traded copper company.
Sunday's agreement is the latest multi-billion dollar takeover deal in the global mining industry, which has been consolidating as companies scramble to add reserves and try to capitalize on record-high metal prices.
Traders speculated that BHP was big enough to bid for Freeport-McMoRan, Phelps Dodge, or even both. Shares in Freeport-McMoRan rose to $58.41.
According to Reuters data, BHP Billiton has a market value of roughly $70 billion, compared to Freeport-McMoRan's roughly $11 billion market value and Phelps Dodge's roughly $24.5 billion.
"We don't comment on market rumors and speculation," said BHP Billiton spokeswoman Samantha Evans. Freeport-McMoran spokesman Bill Collier said: "We don't comment on rumors."
The speculation also sparked demand for Freeport-McMoRan options and lifted its option volatility.
NEW YORK, Nov 21 (Reuters) - Shares in Freeport-McMoRan Copper &...
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Last
$43.56 |
Change
0.390(0.90%) |
Mkt cap ! $220.9B | |||
| Open | High | Low | Value | Volume |
| $43.64 | $43.73 | $43.26 | $211.2M | 4.849M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 11133 | $43.55 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $43.57 | 5435 | 3 |
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| Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
| BHP (ASX) Chart |