Jana Founder Says Agrium Plan May Add $50/Share of Value |
| Bloomberg - Oct 1, 2012 |
Barry Rosenstein, the co-founder of activist hedge fund Jana Partners LLC, said his proposal for Agrium Inc. (AGU) to spin off its farm-retail network and make other changes could add an extra $50 a share of value.
Jana is proposing a so-called tax-free separation of Agrium’s retail business from the Calgary-based company’s wholesale arm. It’s also calling for Agrium’s management to boost capital returns, improve disclosure and reduce costs and working capital, Rosenstein said today in a presentation at the Value Investing Conference in New York.
“There is no legitimate reason to deny shareholders this value-creation opportunity,” he said, according to an advance copy of the presentation obtained by Bloomberg News.
Jana said Aug. 14 that Agrium’s retail network, the largest in North America, had been mismanaged, had too much money tied up in working capital and should be spun off to “unlock significant long-term value.” Agrium Chief Executive Officer Mike Wilson rejected Jana’s demand and hired Morgan Stanley & Co. as an adviser.
Read Full Article from Bloomberg
- Posted: 2012-10-01 14:53:20
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