This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

JANA Partners Releases Supplement To Proxy Advisor Presentation

Stocks in this article: AGU

NEW YORK, March 21, 2013 /PRNewswire/ -- JANA Partners today released a supplement to its presentation for proxy advisors to put to rest new complaints made by Agrium Inc. ("Agrium") (TSX / NYSE: AGU) regarding JANA's initial presentation. The supplement is available at

1.  Agrium complains that our peer methodology is "concocted" and rejected by analysts. 

JANA Response:  Our methodology is nearly identical to the one Agrium used to compare its performance to peers last year (please see page 5 of today's supplement).

2.  Agrium complains that market-based composites should be determined by the market value they contribute, not profit contribution.

JANA Response:  Agrium has significantly underperformed its peer index on this basis as well (please see page 6 of today's supplement).

3.  Agrium complains that JANA unfairly uses 5 non-ag companies in its peer group.

JANA Response:  These are not our comparables, they are Agrium's.  These are the same 5 companies that were widely promoted by Agrium as the most relevant comparables for its Retail business, before JANA pressed Agrium to unlock value for shareholders and Agrium switched its own comparables to avoid the debate (please see pages 7-8 of today's supplement).

4.  Agrium complains that JANA's peer composite overweights one peer, CF Industries.

JANA Response:  CF is heavily represented because it is Agrium's most appropriate Nitrogen peer, and Nitrogen is a big part of Agrium.  CF has done a far superior job of allocating capital and thus has higher shareholder returns, but more skillful management of capital is not cause for exclusion from the peer group (please see page 9 of today's supplement)

5.  Agrium complains that JANA uses a June 1, 2012 performance cutoff period reflecting the impact of JANA's involvement.

JANA Response:  We leave it to the wisdom of all shareholders to determine whether Agrium's first major share repurchase in years, doubling of a dividend announced two weeks earlier, and improved disclosure after years of declining disclosure had nothing to do with the shareholder pressure to improve in these areas that came first (please see page 10 of today's supplement)

6.  Agrium complains that JANA employs a misleading valuation analysis.

JANA Response:  The best way to settle whether Retail is substantially undervalued would be to run a fair and independent review of the company's structure, not one designed to reach a predetermined result as the company has previously done.

7.  Agrium complains that JANA unfairly measures margins to Gross Profit.

JANA Response:  Agrium in October, 2012 acknowledged in a presentation to investors that operating expense to gross profit is the appropriate benchmark for distribution companies and recently made this a public margin target (please see page 12 of today's supplement) 

8.  Agrium complains that JANA's nominees are not independent and not aligned with shareholders because they will receive an incentive from JANA tied to share price performance.

JANA Response:  This is wrong on the law and the facts.  Everyone is entitled to their opinion, but not to their own legal system that magically discredits anyone who disagrees with them (please see pages 17-24 of today's supplement)

9.  Agrium complains that JANA's campaign has no credibility.

JANA Response:  Yes, we have been hearing that management says this as it flies from city to city meeting with shareholders multiple times, in its robocalls to shareholders, in its website videos, and more.  We look forward to the meeting on April 9 th.    

JANA's supplement to its presentation to proxy advisors is available at



Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs