Legendary financier Carl Icahn came to an agreement with Freeport McMoran to install two new directors on its board.
Icahn's firm owns approximately 100 million shares of FCX common stock, which represents approximately 8.8% of FCX's outstanding shares.
News of the deal sent Freeport-McMoran up 9.97% to $13.01.
Andrew Langham and Courtney Mather have been appointed to FCX's Board of Directors. With these additions, the FCX Board is comprised of eleven directors, nine independent directors and two executive directors. Langham has been General Counsel of Icahn Enterprises L.P. since January 2015 and was previously Assistant General Counsel since 2005. Mather has served as a Managing Director of Icahn Capital LP since April 2014.
Earlier this month the company announced it is undertaking a review of strategic alternatives for its oil and gas business.
In news release Ichan said that Freeport stockholders will generally benefit from our agreement, which restricts the ability of the company to implement a poison pill.
"To preempt criticism that we were willing to accept only a small minority position on the board, I should point out that in many of the situations just over the last few years, where we accepted only small minority positions, shareholder value has been greatly enhanced," said Icahn in a news release.
"Several examples are Forest Labs, Hain Celestial, Hologic, Mentor Graphics, Take Two Interactive, Herbalife, eBay, etc., etc. I could go on, but I believe the point is made. I hope and believe that we will work with Freeport's board to enhance value as we have done with so many others in the past."