One dispute settled and another one rose for Freeport-McMoRan Inc (NYSE:FCX), the impact of which was visible on its stock yesterday. While the Credit Suisse Group Inc agreed to pay $10 million cash and provide $6.25 million worth of advisory work to Freeport-McMoRan, the workers of the company initiated their protests in connection with another dispute.
Credit Suisse’s default
Credit Suisse’s settlement came after its role as financial advisor to the company was being questioned. It was alleged that Credit Suisse let Freeport-McMoRan Inc (NYSE:FCX) overpay significantly for the acquisitions of two oil and gas companies. The company has settled shareholder litigation worth $137.5 million two months back for its 2013 acquisition of Plains Exploration & Production Co and McMoRan Exploration Co. However, Credit Suisse denied its wrongdoing as it accepted to pay the settlement amount.
Protest by workers
Over with the litigation, Freeport-McMoRan Inc (NYSE:FCX) overseas another problem at its Indonesian unit, where over hundred workers are protesting for fair compensation. The workers have blocked the access road to the company’s copper mines site for a second day. These workers are demanding their fair share of compensation, which was handed out to other employees in an earlier dispute. The union has confirmed that the protest is independent and that it does not support the protest. There has been no information with respect to slowdown in copper production at the mine. If the production is cut due to these protests, then it will support the prices of metal, which has seen rough times this year.
The company’s representative Daisy Primayanti said that they have the knowledge of the employee protest and are undergoing discussions to find the reasons of dispute. She said that the security of the mine’s operation area is under control. Irrespective of Freeport-McMoRan Inc (NYSE:FCX)’s silence on the subject matter, the impact of the protest was heard on the market as the stock went down by 1.45% to $17.71 during the after-hours.