Shares of Freeport-McMoRan rise after Icahn buys stake and announces cost-cutting plans

MarketsAssociated Press

Shares of Freeport-McMoRan jumped Friday, a day after it announced cost-cutting plans and activist investor Carl Icahn disclosed that he bought a stake in the mining company.

Freeport-McMoRan said Thursday that it would cut costs and reduce spending due to falling copper prices and soft economic conditions around the world. Later that day, Icahn disclosed that he had taken an 8.5-percent stake in Freeport-McMoRan, making him the company's largest shareholder, according to FactSet.

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Icahn said he wanted to discuss cuts in Freeport-McMoRan's operations and capital spending. He also might seek representation on the board of the Phoenix-based company.

Shares of Freeport-McMoRan Inc. rose 35 cents, or 3.4 percent, to $10.54 in midday trading Friday. They traded as high as $11.48 earlier in the day. Shares of the company are down about 71 percent over the past year.