CF Industries scored a big victory this morning at Terra Industries’ annual meeting in New York, as shareholders overwhelmingly voted to replace three Terra directors with three CF-nominated candidates, “CF claims victory.”
The victory strengthens CF’s hand in its bid to takeover the Sioux City-based company. Terra, which has repeatedly rejected CF’s hostile bid as inadequate, took a more conciliatory approach in a statement issued after the vote.
“…Terra shareholders noted that current trends in the fertilizer market could provide potential consolidation opportunities for many market participants. Terra’s board, as always, will continue to maintain an open-minded approach to considering any bona fide opportunity to create meaningful value for Terra shareholders.”
What will Terra’s next move be? Stay tuned. What do you think about the outcome today? Let us know.
No matter how proxy vote at Terra Industries’ shareholders’ meeting Friday turns out, the three-way fight between Terra, CF Industries and Agrium, called the “forever war” by some Wall Street analysts, has the potential to draw on for a very long time, if not forever.
In New York City Friday, Terra shareholders will decide whether to re-elect three incumbent board members or three challengers nominated by CF, which has been doggedly pursuing a hostile takeover of Terra since January. Check out my story online and in print Friday on what the loss of Terra’s Sioux City headquarters could mean for the community, “City leaders say much at stake in today’s vote.”
A CF victory presumably would put the Deerfield, Ill-based company in the driver’s seat to force a combination. But Terra, which would still control five of the eight seats on the board, could very well decide to try to fend off CF by launching additional defenses.
On the other hand, a Terra victory would more than likely allow the Sioux City-based company to remain independent. But some analysts expect CF to make one last significantly higher offer before throwing in the towel, however.
Canadian ag giant’s Agrium’s own pursuit of CF muddies the waters. On Thursday, Agrium announced that 62 percent of CF shareholders now back its $5.1 billion buyout offer, which had been scheduled to expire at midnight Wednesday “Majority of CF shareholders support Agrium bid.” Despite the widespread support, CF management still refuses to negotiate with Agrium.
It boils down to this. CF executives are refusing to do what the majority of its shareholders want. At the same time, they’re courting Terra shareholders to vote differently than Terra’s management is recommending.
Who will win in the end? We may know more Friday, or everything may become even less clear.
Watch this blog and siouxcityjournal.com for a report from the meeting. I’m particularly looking for Terra shareholders to talk to about their vote. Please email me at: davedreeszen@siouxcityjournal.com or call 712-293-4211.
If the first stop in Sarah Palin’s nationwide “Going Rouge” tour is any indication, the Barnes & Nobles store and Southern Hills Mall in Sioux City should be one busy place when the former Alaska governor visits on Dec. 5.
Despite freezing temperatures, people began standing outside the Barnes & Noble in Grand Rapids, Mich. to greet Palin, the Detroit Free Press reports, ” By 5 am, the crowd outside had swelled to more than 1,500. Check out the YouTube video above as she arrives.
The big turnout came on a school day in the middle of the week. Palin’s stop in Sioux City will come on a Saturday, when many more people have the day off. Because it’s the only Iowa stop on her tour, the appearance likely will drive fans from hundreds of miles away.
How big of crowd do you think it will be? Are you planning to go? Do you plan to buy her book? Let us know.
The Obama administration boasts federal stimulus dollars “saved” or created jobs in 13 Iowa congressional districts.
The trouble is the last time I checked Iowa only had five districts. Not sure where the other eight districts are located. Where are they and why haven’t we heard about them before?
The federal Website that tracks stimulus dollars spent, recovery.gov shows $10.6 million spent – and 39 jobs created — in non-existent districts in Iowa.
Not sure if Gotham City, NY., Lake Woebegone, Minn. or Margaritaville, Fla. are among the cities where the administration claims credit for creating jobs.
Administration officials blame the faulty reporting on human error.
With an all-important proxy vote looming on Friday, Terra Industries today sent a pair of letters to shareholders Monday.
In the second letter, the Sioux City-based company reminded shareholders that three independent proxy advisor firms — Glass Lewis, Proxy Governance and Egan-Jones Proxy Services — all recommend a vote for Terra-backed directors, rather than a rival slate nominated by CF Industries.
The other letter blasted the nation’s leading proxy advisor, RiskMetrics, for its recommendation that Terra shareholders accept CF’s hostile bid for the Sioux City-based company.
In a letter Friday, CF trumpeted the decision by RiskMetrics, whose opinions have carried weight in past hostile-takeover-related shareholder votes. Of the largest 50 mutual fund companies, 43 are clients of RiskMetrics, according to its Web site.
Clearly aware of RiskMetrics’ potential influence, Terra fired off a letter attempted to discredit RiskMetrics’ conclusions, which Terra called “fundamentally flawed.”
Among other things, Terra argued RiskMetrics’ recommendation is contradictory because it does not endorse CF’s current offer as “an offer Terra or its shareholders should accept.”
In its report, RiskMetrics noted that “although Terra shareholders may in the aggregate believe they deserve more than the current offer on the table, we note that the Terra board has had almost an entire year to find an alternative transaction or negotiate an agreed deal at a higher price with CF.”
Read the full letter in which Terra critiques RiskMetrics’ recommendation, here.
Also read the letter Terra sent Monday that highlights the recommendations of Glass Lewis, Proxy Governance and Egan-Jones Proxy Services, here.
Last week, I made my fourth and final trip this year to Denny and LaRae Mauser’s popcorn field north of the Sac County town of Schaller, Iowa.
Photographer Jerry Mennenga and I spent much of Tuesday afternoon alongside the couple as they brought in this year’s harvest, which Denny described as his best crop in the 20 years he’s been growing popcorn for Sioux City-based Jolly Time.
This week’s story, video and photos are the latest installment in our year-long series, “A Jolly Journey,” we’ve followed the kernels the Mausers planted last spring as they make their way into Jolly Time microwave bags.
Early next year, the series resumes as the Mausers’ popcorn, after being dried to the optimum moisture level, goes through an extensive cleaning process. From there, we’ll follow the kernels as they are flavored, packaged and delivered to retail shelves.
Developments this week from north of the border should cheer backers of the Hyperion Energy Center proposed for Union County, S.D.
According to a new study, crude production from oil sands in western Canada may more than double to 3.2 million barrels a day by 2020, Bloomberg reports.
For the projection, the London-based Centre for Global Energy Studies and Calgary-based Geopolitics Central assumed average annual global economic growth of 3.6 percent over the next 10 years. Slower economic growth would mean extraction of the crude would rise to 2.4 million barrels a day from about 1.21 million barrels last year.
Hyperion’s proposed refinery would process 400,000 barrels per day from Alberta’s vast oil sands fields. The Texas-based company has not yet secured a supplier or a pipeline to carry the crude to southeast South Dakota.
Canada’s heavy oil sands are more expensive to extract than conventional crude deposits, making them more sensitive to a downturn in the economy. Environmental groups are fighting to slow or stop production of the dirtier crude, which they claim fouls and air and land on both sides of the border.
The Canadian government has mounted its biggest campaign yet to sell key U.S. policy makers on the energy security benefits of the tar sands oil, the Calgary Herald reports, “Canada steps up oil sands push in United States.”
“Canadian Natural Resources Minister Lisa Raitt said she and her staff are lobbying interests in the United States at all levels, trying to send the message that the huge heavy-oil resource in Alberta is being developed responsibly and that U.S. input on environmental fixes is welcome,” the Herald reports.
Here’s the key graph about Terra boss Mike Bennett, whom Reuters notes started at the Sioux City-based company as an operations technician at the Port Neal plant in 1973 and worked his way up the ladder to become CEO in 2001.
“He has earned a reputation as a strong operator and a consummate company man who is fiercely loyal to Sioux City.”
The story points out that Bennett and other senior Terra management face tough sledding at the company’s annual shareholders meeting on Nov. 20, where CF has nominated slate of candidates to replace three Terra-based directors.
A victory for the CF nominees would likely help the Deerfield, Ill.-based firm clinch a deal.
“This is a gritty management (at Terra) and they value their independence. And I think they’ve made an awful good case for continuing to be independent,” Charlie Rentschler, analyst at Wall Street Access, told Reuters.
Late Wednesday, siouxcityjournal.com was the first to report on the expansion of Stream’s contract call center in Sergeant Bluff, “Stream addign 300 jobs.”
The suburban Boston-based company attributed the new hiring, which will raise total local employment to about 1,100, to added business growth by the clients the local call center supports. They include Sirius XM, Apple, Nike and Intuit.
Could the “cash for clunkers” auto incentive program be contributed to at least some of the Sergeant Bluff growth growth. The Wall Street reported Thursday that Sirius in the third quarter began adding satellite radio subscribers for the first time since December, “Sirius makes strides in third quarter.”
Sirius XM, which ran into financing difficulties that nearly sent it into bankruptcy early this year, before Liberty Media Corp. took a 40% stake, got a boost during the third quarter from cash-for-clunkers, the federal goverment program that paid consumers to trade in their gas-guzzlers for new, more fuel-efficient models.
The purchase of many new models comes with a subscription to Sirius XM. To activate the service, owners must call an 800 number. Customers service representatives at the Sergeant Bluff center handle many of those inbound calls, helping Sirius subscribers not only set up their service, but also answer questions about it afterwards.
“We have been forecasting a 10.5 percent peak for the unemployment rate in mid-2010; given that it is already at 10.2 percent, this could be too low,” writes Joshua Shapiro, chief US economist for MFR Inc. in New York.
The $787 billion stimulus bill pushed by President Obama and passed by the Democratic-controlled Congress last February is looking increasingly like a failure of sorts. At the time, the Obama administration promised that passing the huge tax and spending bill would keep unemployment from rising above 8 percent.
A recent administration claimed that the stimulus bill had created or saved more than 600,000 jobs (how do you accurately measure how a job is “saved.”) But media analysises of the documentation has found numerous errors that contributed to an inflated count, “White House tally appears to overstate stimulus jobs.”
For example, raises paid to some preschool teachers with stimulus dollars were mistakenly counted as saved jobs.
And a Kentucky shoe store that supplied nine pairs of work boots to the U.S. Army Corps of Engineers counted the $800 expenditure as saving nine jobs.
That large of a bang for the buck was too good to be true.
