Freeport McMoRan Loss (1 Viewer)

[RJ in Lafayette]

I am surprised that nobody yet has started a thread on Freeport McMoRan Copper & Gold acquiring an Arizona company and then moving its headquarters to Phoenix, the site of the the company being acquired.

It isn't supposed to work this way. A reason for the explosive growth of Charlotte is the expansion of its banking sector because of the acquisitions by Charlotte banks.

What's the story with Freeport McMoRan? I know that the company's other operations are staying in town and that for now the headquarters move will result in few jobs. For now. But it's the loss of Fortune 500 company.

 

[gaminerie]

i read about the Phelps Dodge acquisition. The deal is done.

i've remarked here before about city and state officials maybe shutting the door before ALL the horses get out of the barn. it's just another downer.

The insurance issue desperately needs to be addressed before businesses can be expected to continue operations in the region. then hospitals, schools, airport. but IMO insurance, and the costs and coverages thereof, is snarling absolutely everything.

i don't know whether it has to happen on the federal level or what, but something has to be done. From what i read day to day, i can't even figure out whether the insurance issue is a logjam or a runaway train.

 

[Dishiki]

I agree about the insurance issue. I spoke to a buddy of mine who wants to move from Gretna over to the northshore, but insurance right now is a dealbreaker. State Farm will not allow you to transfer your policy. So he said he would have to go with Citizens and the quote he was getting on 275k house was 6,000 a year.

Before we moved we were paying 1200 a year on about 195k of house in Jefferson.

 

[efil4stnias]

I agree about the insurance issue. I spoke to a buddy of mine who wants to move from Gretna over to the northshore, but insurance right now is a dealbreaker. State Farm will not allow you to transfer your policy. So he said he would have to go with Citizens and the quote he was getting on 275k house was 6,000 a year.

Before we moved we were paying 1200 a year on about 195k of house in Jefferson.

Tell your friend to call AAA.. LAstrapes insurance agency in Metairie.


As for the insurance issue, totally agree and it is NOT getting enough media time ( tv or print ). I am in the insurance industry ( commercial ) and you would be surprised at some of the rates for property coverage we get from companies. As for Citizens insurance, I will not write a policy with them. With all the problems they had post Katrina, I would rather pass on the buisness than have my cleint deal with thier headaches later.

 

[gaminerie]

So my point is that employers who are looking at staying, or possibly relocating to New Orleans region, are already looking at the challenge of asking potential candidates to pay housing costs (which includes exorbitant, unjustified, mysterious homeowners' premium hikes for what has already been determined lackluster coverage).....

this affects renters as well as owners, since higher premiums do get passed on to the tenant.


but also with three? hospitals open out of eleven, and a provider shortage, it's a medical insurance issue as well. Of businesses who do offer medical insurance, many employers pay more than half on those health premiums. For those who do have employees pay the greater share, a competitive comp package has to take that into consideration. Normal bumps and scrapes and kids falling out of trees and stuff, ER situation very different.

i am curious as to the level of operations which already exist in Phoenix for this merged entity, and the level of planned operations which might have branched off the (New-Orleans based) Indonesian mine, but will likely now start in Phoenix.

 

[Dishiki]

I am curious as to the real movement of people with FM. I have two friends who work there, one for McMoRan Exploration and another one in support of all three entities. I worked there for a time as a consultant (late 90s) and even then, the professional force was not too large. Didn't seem like there were more than maybe 200 people there.

I'm curious as to the ripple effect. Will Jones Walker still be their primary legal counsel, or will it be some firm out of Phoenix? What about their auditors, will it still be E&Y ( I think that is who still does it, or it might be Deloitte)? It's not just a direct employee effect. It has the potential to cause milllions of dollars of losses in secondary revenue (legal and consulting fees).

 

[alon504]

We're losing less than 10 jobs...I'm not going to cry over stuff like this. We've got much more significant things to worry about right now in this city. Freeport-McMoran is still here...Freeport-McMoran Copper/Gold is moving to Phoenix.

 

[RJ in Lafayette]

It's not Entergy leaving for Florida. But on paper I understand that it's the loss of a Fortune 500 company. And what happens when there's a new CEO.