Freeport-McMoRan Inc (NYSE:FCX)‘s stock opened 1% higher today following news of Carl Icahn‘s increased interest in the mining and energy company. According to a newly-amended filing with the Securities and Exchange Commission, Icahn Capital may be deemed to own exactly 100 million shares of Freeport-McMoRan, or 8.8% of the company’s common stock. Just 7.59 million of those shares were purchased by affiliated funds, while the remaining are shares underlying forward contracts. Since his initial filing in late August, Icahn has added exactly 12 million shares underlying forward contracts to his holding.
His ruthless approach to activism has earned Carl Icahn the title of ‘corporate raider’, especially following his hostile takeover of Trans World Airlines in 1985. Paypal Holdings Inc (NASDAQ:PYPL)’s spin-off from eBay Inc (NASDAQ:EBAY), as well as a killer trade with Netflix, Inc. (NASDAQ:NFLX) that made Icahn a profit of more than $800 million in less than a year, are among his major recent successes. His affinity for Apple Inc. (NASDAQ:AAPL) is well known in the investment world, with the tech giant continuing to be his biggest bet: 52.7 million shares worth some $6.61 billion at the end of the second quarter. Icahn Capital is also heavily invested in eBay still, holding 46.2 million shares, as well as in Hologic, Inc. (NASDAQ:HOLX), a producer of medical equipment in which he owns 34.1 million shares.
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Icahn revealed his investment in Freeport-McMoRan Inc (NYSE:FCX) at the end of August following reports that he was interested in buying as much as 25% of the company. Although the filing revealed that he could potentially seek board representation, there is no ambiguity in Icahn’s demand to reduce spending and executive compensation. The company’s management has stated its openness to dialog with shareholders in its bid to return to profitability amid falling commodity prices. For the three months ending June 30, 2015, Freeport-McMoRan posted revenues of $4.24 billion, 23% lower year-over-year, while net profit turned negative, with the company posting a loss of $0.09 per share. Analysts are upbeat about the prospects for the current quarter, expecting earnings of $0.05 per share derived from estimated revenues of $4.2 billion. The company has pledged to scale back operations at some of its mining facilities, trim its U.S workforce, and reduce next year’s capital spending to $4 billion from the previously estimated $5.6 billion.
Freeport-McMoRan Inc (NYSE:FCX) announced on Friday that it has raised approximately $1 billion from a previously-announced share sale. As a result, the company’s stock fell by 9.7% to $10.88, while so far this year shares are down by 53%. The company announced its intention to use the proceeds from the sale for debt repayment and capital spending. During the second quarter, the number of hedge funds invested in Freeport-McMoRan increased to 41 from 31, while the overall value of their holdings increased by 125% to more than $581 million. Hedge fund legend Stanley Druckenmiller joined the list of the company’s fans in the second quarter, initiating a position that amasses 3.54 million shares, while Ken Griffin boosted his stake in the company by 19% to 2.72 million shares. Mario Gabelli‘s GAMCO Investors holds a similar position of 2.73 million shares, up by 13% during the quarter.
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