CHICAGO, Ill. (Reuters) — London-based Pensions Investment Research Consultants is recommending that Agrium Inc. shareholders vote for the company’s board candidates, rather than those of dissident shareholder Jana Partners.
PIRC’s decision follows a similar recommendation on March 21 by U.S.-based proxy adviser Egan-Jones that investors side with Agrium candidates in the company’s proxy battle against Jana.
Jana wants Agrium, the fertilizer maker and farm input retailer, to split off its farm retail division, improve its use of capital and cut costs, among other changes.
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Agrium shareholders have begun voting, but some are awaiting decisions by influential shareholder advisory services ISS and Glass Lewis.
The board’s makeup is expected to be announced April 9. In its report, PIRC, a research and advisory firm serving institutional investors, cited two concerns about Jana.
Jana, a New York hedge fund and Agrium’s biggest investor, owns 7.5 percent of the company but is seeking to control 42 percent of the 12-member board by nominating five candidates, it said.
PIRC also said it took issue with Jana’s plan to separately compensate those of its candidates that are elected to Agrium’s board.
Investment management firm Letko, Brosseau & Associates Inc., which owns 1.5 percent of Agrium, has also sided with the company’s candidates, as has the British Columbia Investment Managment Corp.
