Phelps Dodge hands back $1500 million to shareholders

Phoenix, Arizona -- Phelps Dodge Corp., owners of Carbon black supplier, Columbian Chemicals Co. has announced a program to spend £1500 million on its shareholders in a bid to boost its share price.

In the first phase of the plan, the company will issue a special dividend of $5.00 per common share, or approximately $500 million, payable on Dec. 2, 2005, to common shareholders of record at the close of business on Nov. 16, 2005.$1.5 billion in capital to them by the end of 2006.

In the second phase, the company intends to spend $1000 million to re-purchase shares. In a statement, the company said, "Based on the company's current balance sheet and its view of 2006 and overall world economic conditions, the board also approved a return of up to $1 billion to shareholders through share repurchases during 2006. The company, however, may issue special dividends in lieu of a portion of share repurchases."

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Press release from Phelps Dodge

Website of Phelps Dodge