PHELPS DODGE SEEKS TO DIVERSIFY MORE FROM COPPER
Phelps Dodge Corp is prepared to make
another large non-copper acquisition and a deal could be struck
in the near future, chairman G. Robert Durham said.
    Durham told Reuters the company was examining potential
candidates but not yet talking with any. Any acquisition must
have a different economic cycle to copper, he said.
    Phelps Dodge, the largest U.S. copper producer, last year
paid 240 mln dlrs for Columbian Chemicals Co which makes carbon
black used in rubber and tires. The purchase was part of a
strategic plan to diversify and then match earnings between
copper and non-copper operations.
    The company could spend between 250 mln and 500 mln dlrs to
buy another non-copper firm, Durham said, citing 100 mln dlrs
of cash and 580 mln dlrs of untapped bank credit.
 Reuter
