Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Despite Slashing Agrium, Jana Partners is Still Very Much an Activist

Jana Partners, Agrium: In a new 13D with the SEC, Barry Rosenstein‘s Jana Partners reported just a 2.7% stake in Agrium (NYSE:AGU). This is about one-third the size of the stake Jana reported in its last 13F, and in the latest filing, it said “it is pleased by the Issuer’s progress” in the areas of:

(1) capital allocation:  the Issuer has continued to substantially increase its capital return to shareholders, (2) controls:  new metrics regarding the profitability of the Retail business including ROIC, costs and working capital levels have been introduced and incorporated into determining management’s compensation, (3) costs:  the Issuer has announced it will convert to a “hub and spoke” supply system which should help rationalize costs and reduce excess working capital, and (4) corporate governance:  the Reporting Person expects that recently announced management changes and scheduled board retirements will lead to improvements in the Issuer’s openness and responsiveness to proposals for value creating change and to renouncing certain of the tactics employed by the Issuer in connection with the 2013 Annual General Meeting including the undisclosed compensation of brokers and financial advisers for soliciting votes for the incumbent board.

Jana also adds that it “may continue to take other steps seeking to bring about changes to increase shareholder value,” so don’t feel too bearish on this move.


Barry Rosenstein JANA PARTNERS

Disclosure: none

Recommended Reading:

Zac Hirzel Boosts Hawaiian Holdings Stake Over 10%, Seeks Board Seat

Private Capital Management Drops Dover Downs Almost Entirely

Jeff Gates’ Hedge Fund Ups Stake in Nortek to 18.8%

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.