Agrium Criticizes break-up Plan of Hedge Fund

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Agrium the fertilizer maker is at war with its biggest shareholder Jana Partners when the Agrium criticized the plan of Jana to break up the company. The rebuke was put in a strongly worded letter sent to the company's investors before its annual meeting scheduled for next month.

The Calgary based fertilizer company mailed its proxy circular to shareholders, calling the hedge fund's plan as an 'ill-conceived scheme' aimed to devalue the shareholders interest.

The hedge fund owns 7.5% of the fertilizer firm and has been demanding changes in the company. The changes recommended include a split of its wholesale fertilizer production group and its retail business. The latter sells seeds, crop protection chemicals, fertilizers and other farm produce.

A truce was hoped to be reached when Jana had recommended five candidates for election to the Agrium Board of Directors.

Jana is a New York based hedge fund and is an activist fund manager with a history of major shake ups with the companies it targets.

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