# Agrium - outcome of Jana 'takeover'



## Sampson (Apr 3, 2009)

Anyone following the craziness in the proxy battle over control of Agrium?

I'm a relatively new shareholder, and happy with my returns so far, not convinced Jana's proposed breakup of the retail business will be good for returns and unleashing potential return.

Whether you are a shareholder or not, what do you think the outcome of the vote will be? Anyone attending the Annual Meeting?


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## HaroldCrump (Jun 10, 2009)

I am following it keenly since it first emerged.
I voted last week on the white form, i.e. rejected Jana Partner's blue form.
Agrium even called me at home and left an automated VM !

I can't attend the AGM for geographical reasons.

As for the outcome, I don't believe Jana Partners will succeed.
I personally do not believe in their pitch.

However, I am prepared for a price slide that may result from it.
Some analysts have said price could slide as low as $90 if Jana's bid is defeated.


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## Sampson (Apr 3, 2009)

I guess there aren't too many Agrium shareholders on this forum?


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## doctrine (Sep 30, 2011)

For me, the dividend isn't high enough to entice me in, but if they increase it by 100% again in the next year without a stock price appreciation, I might be in.


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## HaroldCrump (Jun 10, 2009)

They have been doubling/tripling their dividends in the last 2 - 3 years.
What more do you want?
Geez, man


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## Sampson (Apr 3, 2009)

Focus on yield, pay daddy, get paid while you wait, it'll soften the blow if the market tanks, high yielding stocks outperform, my YOC is high therefore this is a good investment.

Agrium, and the sector as a whole has provided great returns over the past few years. Hard to complain about that.

Back to the vote, tomorrow is the day of reckoning. I wonder if Jana's choices get elected what, aside from the retail splitting off wil happen. When do motivated hedge funds stop? Break the company apart, sell for immediate gain, then have their BOD's resign?


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## doctrine (Sep 30, 2011)

They're starting to get into real dividends with a 2% yield but I'll still wait  3% is usually the minimum for me even with strong growth.


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## Sampson (Apr 3, 2009)

I sorta wish I went to the AGM. Coverage here from BNN

http://www.bnn.ca/Special-Coverage/Agrium-Proxy-Battle.aspx

Tweets are showing that it was bitter to the end, this is as public as a hostile BOD turnover seems to get, although CP was nasty too.

Lesson learned, when given the opportunity to see rich men yell at each other, take it by the horns.


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## HaroldCrump (Jun 10, 2009)

It's done...Jana lost out. All 12 Agrium board elected.
Stock seems to have begun its expected slide.


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## humble_pie (Jun 7, 2009)

HaroldCrump said:


> Stock seems to have begun its expected slide.


i don't have agrium but in case u are temporarily disappointed by the slide in sh price ... they always say that once courted there are going to be other suitors, so a drop in sh price might be only fleeting


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## HaroldCrump (Jun 10, 2009)

humble_pie said:


> i don't have agrium but in case u are temporarily disappointed by the slide in sh price ... they always say that once courted there are going to be other suitors, so a drop in sh price might be only fleeting


I am not worried about the drop in share price (yet).
I was fully prepared for it, once the battle with Jana Partners began.
My guess is that they will eventually manage to get at least one board member injected in there - probably the head honcho Rosenstein.
After a few failed attempts to derail the company, I am hoping they will lose interest and move on to feed on some other company and leave us alone.

This battle is not over yet, though, but at least stock did not slide as low as $90, which was being predicted by some analysts (mostly fear mongering on behalf of Jana)


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## Eclectic12 (Oct 20, 2010)

Sampson said:


> I guess there aren't too many Agrium shareholders on this forum?


Or like me, they've sent their vote in & have better things to do than follow the blow by blow updates .... :rolleyes2:


Cheers


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