RE: Phelps Dodge Corporation (“PD/PD1C”) Merger COMPLETED
with Freeport-McMoRan Copper & Gold Inc. (“FCX/FCX1C”)
Shareholders of Phelps Dodge Corporation (“PD/PD1C”) voted on Wednesday, March 14, 2007, and approved a Merger between PD and Freeport-McMoRan Copper & Gold Inc. (“FCX/FCX1C”). Commensurate with the completion of the merger, PD will be a wholly owned subsidiary of FCX. The merger became effective today, March 19, 2007. Pursuant to the terms of the merger, each share of PD common stock outstanding immediately prior to the consummation of the merger will be converted into the right to receive 0.67 shares of FCX common stock, plus $88.00 cash.
Contract Adjustment
Pursuant to The Options Clearing Corp. rules, all outstanding PD1C future contracts will be adjusted as follows. On Tuesday, March 20, 2007 each adjusted Phelps Dodge Corporation futures contract will require the delivery or receipt of: (A) 67 shares of FCX Common Stock; plus (B) $8,800.00 cash. The PD1C futures symbol will change to PD2C. The contract multiplier will remain at 100 (1.00 will equal $100). The CME clearing code for the resulting PD2C contracts will be PD2.
Since Phelps Dodge Corporation will not longer trade PD1C will not be reintroduced.
Questions regarding this memo can be addressed to The Options Clearing Corporation at 800-621-6072. This and all other OneChicago corporate event circulars can be accessed from the OneChicago Web site at www.OneChicago.com PDF