* Jana wants retail division separate from wholesale
* Five board candidates to visit Canadian investors
* Agrium will make presentation to analysts on Monday
* Agrium closes at 4-1/2 year high before Jana statement
By Rod Nickel
WINNIPEG, Manitoba, Jan 23 Activist shareholder
Jana Partners LLC said on Wednesday it is taking its case for
splitting up Agrium Inc to the fertilizer
company's Canadian investors, just ahead of an Agrium move to
solidify its support among sell-side analysts.
Jana, a New York-based hedge fund, wants Agrium to split its
farm retail division from its wholesale operations and make
other changes to improve returns to shareholders.
Agrium has steadfastly refused to consider spinning off its
retail arm while seeking to placate disgruntled shareholders by
raising its dividend last year and completing a share buyback.
"Agrium's board has been living in an alternate universe
where shareholders have no desire to explore the many ways we've
identified to unlock value," said Jana managing partner Barry
Rosenstein, one of the hedge fund's candidates for Agrium's
"All along we have been speaking to shareholders and seeing
a much different picture, with just about every shareholder we
speak to wanting to see a serious discussion of these issues and
a large and growing number who support enhancing the board so
Agrium can reach its full potential."
Jana owns 6 percent of Agrium, making it the biggest
shareholder of the widely held company.
Agrium has said that Jana's efforts have gained no traction
with investors. A spokesperson could not be immediately reached.
Agrium management is scheduled to give a presentation on its
strategy on Monday in New York to sell-side analysts, including
a review of its retail division.
Jana's tour of Canadian investors, who make up an estimated
one-third of Agrium's shareholders, will also include Jana's
five candidates for Agrium's 11-member board.
The hedge fund said it will zero in on five issues it has
raised that Agrium has not fully addressed:
- conducting an unbiased review of Agrium's structure
- changing up the board
- making better use of capital
- controlling retail and corporate costs
- improving disclosure to shareholders.
Agrium contends its strategy of integrating its wholesale
and retail arms helps provide steady earnings even during
downturns in the volatile commodity sector.
In an Oct. 1 presentation to an investor conference, Jana
said Agrium's share price could rise by about $50 if the company
took steps to improve its business. The U.S.-listed stock closed
that day at $105.53.
On Wednesday, Agrium's New York shares rose to a fresh 4-1/2
year high of $110.88. Jana issued its statement after the close.