EDMONTON, March 22, 2013 /PRNewswire/ - Activist investors fulfill an important role when sleepy Boards tolerate suboptimal performance. That is not the case with Agrium. It has done well for its shareholders, both absolutely and relative to peers. Its vertically integrated business model promises to deliver favourable, long- term returns. Keeping wholesale and retail agricultural operations together offers economies of scale, a lower cost of capital, better access to markets, and shared market intelligence, at a time when global food demand is rising.
AIMCo considers the incumbent Agrium director roster to be robust in terms of composition, experience, and independence. The new Agrium director nominees offer superior agricultural market knowledge.
We struggle with a governance model where Jana Partner's dissident nominees are compensated in a different manner than other directors. This has negative effects on the board: lack of independence, fragmentation, and reduced efficacy. Jana's plan is misaligned with the interests of long-term shareholders.
About Alberta Investment Management Corporation (AIMCo)
AIMCo is one of Canada's largest and most diversified institutional investment managers. AIMCo was established on January 1, 2008 with a mandate to provide superior long-term investment results for its clients. AIMCo operates independently from the Government of Alberta and invests globally on behalf of 28 pension, endowment and government funds in the Province of Alberta, including the Alberta Heritage Savings Trust Fund. For more information about AIMCo, visit www.aimco.alberta.ca.
SOURCE Alberta Investment Management Corp.