Investor in Canada's Agrium sides with management

14 August 2012 19:09  [Source: ICIS news]

TORONTO (ICIS)--A break-up of Agrium into separate wholesale and retail businesses would not result in better value for shareholders, an investor in the Canada-based fertilizer major said on Tuesday.

“It’s not obvious to me that you would create a whole bunch of value” by breaking the company up, said Bruce Campbell, president of Campbell & Lee Investment Management, an Oakville, Ontario-based investment firm that holds a stake in Agrium.

Campbell said that Agrium’s retail business smoothes out the wholesale side, a strategy that is attractive to investors. Agrium built out the retail business in past years through a number of inexpensive acquisitions, he added.

Campbell’s remarks came after Agrium CEO Mike Wilson earlier on Tuesday rejected suggestions that the company be split into separate wholesale and retail businesses to improve shareholder value.

Agrium’s share price was up 0.5% to Canadian dollar (C$) 96.04 at 13:30 hour Toronto time on the Toronto Stock Exchange.

By: Stefan Baumgarten
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