Under the agreement, which was announced Nov. 16, 2005, Phelps Dodge received base purchase price proceeds of $543 million and approximately $100 million of Columbian's foreign-held cash. The agreement also includes a provision for post-closing adjustments. At closing, those adjustments, together with transaction expenses, were estimated to reduce net proceeds by approximately $43 million, for net proceeds of approximately $600 million upon final settlement. The transaction resulted in special, net after-tax charges of approximately $65 million, resulting mostly from goodwill impairment charges, employee-related costs and tax benefits. Of that amount, approximately $43 million was recognized in the 2005 fourth quarter.
Phelps Dodge Corp. is one of the world's leading producers of copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ approximately 13,500 people worldwide.
