The Successful Investor Hotline – Friday, September 14, 2012

Article Excerpt

AGRIUM INC., $100.74, Toronto symbol AGU, is buying back up to 9.5 million, or 6%, of its 158.0 million outstanding common shares through a Dutch auction process. It will spend a total of $900 million on these repurchases. The company makes fertilizers from natural gas. It then sells them, along with other agricultural and industrial goods, through its more than 1,200 stores in North America, South America and Australia. Under the Dutch auction buyback plan, shareholders who want to sell their Agrium shares must offer them for between $95.00 and $107.00 by October 19, 2012. The final price will be the lowest amount within that range at which Agrium can buy $900 million of its shares. The company will then pay that price for all shares tendered at or below it. If you tender at a higher price, Agrium will return your shares. The transactions are commission-free. We still like Agrium’s long-term outlook. However, if you are thinking about selling, you may wish to…