Agrium meets with Jana
Agrium Inc. confirmed that CEO Mike Wilson met with one of its shareholders, Jana Partners LLC, on Wednesday, Aug. 15. However, it said that it meets regularly with shareholders and that the meeting with Jana was arranged weeks ago.
Jana bought some 6.5 million shares of Agrium valued at $575 million as of June 30, 2012. This reportedly represents about 4 percent of the company, making it Agrium’s largest shareholder.
Jana has commented that it would like for Agrium to spin off its Retail division as a separate company. Agrium issued a release Aug. 14, saying that its board of directors has unanimously rejected that idea.
At the Aug. 15 meeting, Agrium said it made clear to Jana that the board carefully considered Jana’s position that Agrium should spin off its Retail operations. Agrium reiterated that the board determined that a spin-off would not be in the best interests of the company or its shareholders. Agrium said it is confident that it has an effective long-term strategy to create sustainable value for shareholders. Agrium believes the performance and value of its Retail operations will continue to be maximized within the existing structure.
Morgan Stanley & Co. LLC is acting as financial advisor to Agrium.