Agrium Inc, the Canadian agricultural company received additional support in its proxy fight with Jana Partners, the hedge fund firm. This support came when another major shareholder sided with the board's recommended candidates.
The shareholder, Letko, Brosseau and Associates said in a formal statement, "The impact of Jana's proposals on the value of Agrium is, in our view, highly speculative." The management firm owns nearly 2.3 million shares in Agrium or about 1.5% of outstanding stock.
For its part, Jana Partners is seeking to spin off the farm retail division from the fertilizer producer in order to cut costs and to better utilize capital. The firm also wants to add directors with more relevant experience in its Board of Directors.
This was also followed up by another Agrium shareholder namely British Columbia Investment Management Corp. It sided with the company saying Agrium's board was providing effective management oversight in operations of the company.
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