Activist investor Carl Icahn bought a big stake in Freeport-McMoRan Inc., adding pressure to the beleaguered miner hours after it disclosed a major retrenchment in response to the global commodity rout and an ill-timed pair of acquisitions two years ago.
The billionaire activist investor disclosed late Thursday he holds an 8.5% stake in Freeport, worth roughly $900 million and enough to make him one of the company's biggest shareholders. A securities filing said he would potentially seek board representation and wants the company to cut spending levels and executive compensation.
The disclosure followed word by Phoenix-based Freeport earlier in the day that it would slash 2016 capital spending by 29%, cut about 10% of its U.S. workforce--or more than 1,500 jobs--and reduce output. That is on top of plans to cut spending in its oil-and-gas operation announced earlier this month.
Freeport said in a statement that it "maintains an open dialogue with our shareholders and welcomes constructive input toward our common goal of enhancing shareholder value."
The billionaire activist investor disclosed late Thursday he holds an 8.5% stake in Freeport, worth roughly $900 million and enough to make him one of the company's biggest shareholders. A securities filing said he would potentially seek board representation and wants the company to cut spending levels and executive compensation.
The disclosure followed word by Phoenix-based Freeport earlier in the day that it would slash 2016 capital spending by 29%, cut about 10% of its U.S. workforce--or more than 1,500 jobs--and reduce output. That is on top of plans to cut spending in its oil-and-gas operation announced earlier this month.
Freeport said in a statement that it "maintains an open dialogue with our shareholders and welcomes constructive input toward our common goal of enhancing shareholder value."