For almost six months now, shareholders of Plains Exploration (UNKNOWN:PXP.DL) have had the chance to mull over whether they want to accept the $6.9 billion buyout from mining giant Freeport McMoRan (NYSE:FCX). In a move to push along the process, Plains' management has penned a letter to shareholders encouraging them to accept the deal. While the deal is certainly less lucrative than it was when it was proposed back in December, there is still some merit to the idea.
To better understand what a Plains shareholder will be getting from the deal, you need to look at both the buyout package as well as the prospectives for the new merged company in the long term. In this video, Fool.com contributor Tyler Crowe takes a look at what the combined company might have in store for Plains investors, and whether they should hang onto their newly minted Freeport McMoRan shares.
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