The Mosaic Company Investor files Lawsuit against Cargill’s plan to sell $24billion stake

March 7, 2011 - PRLog -- An investor in The Mosaic Company  filed a lawsuit seeking to block the planned sale of Cargill‘s 64 percent stake in Mosaic saying the deal is unfair to minority shareholder in The Mosaic Company.

If you purchased shares of the Mosaic Company (NYSE MOS) prior to Jan. 18, 2011 and currently those shares, you have certain option and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges that “the initiation, timing and purpose of the transactions were all to serve Cargill's interest" and the deal solely benefits Cargill at the expense of minority shareholders of The Mosaic Company .

On Jan 18, 2011 The Mosaic Company  and privately held Cargill announced a transaction that would result in the spin-off of Cargill's 64% stake, or 286 million share position, in the Mosaic Company to Cargill's shareholders and debt holders. The planned transaction will free up cash. Cargill will exchange 179 million Mosaic shares for Cargill stock held by Cargill shareholders. The other 107 million Mosaic shares will be swapped for Cargill debt held by third parties.
But the plaintiff claims the deal is “not entirely fair” and will give Cargill more valuable stock and increase its voting power to 89 percent at the expense of minority shareholders. Mosaic’s minority stakeholders would see their voting power decrease from 36 percent to 11 percent. Cargill, "as Mosaic's controlling stockholder, [..] stands on both sides of the transactions and therefore bears the burden of proving entire fairness" and "Cargill cannot meet this burden”, so the plaintiff. According to the complaint the plaintiff says that a special committee of Mosaic's board failed to obtain a fairness opinion on the transaction and lacked information necessary for an objective evaluation. Stockholders also won't be able to make an informed vote on the plan to determine if Cargill’s sale would “be fair to and in the best interest of Mosaic shareholders” because of materially misleading and incomplete disclosures, so the lawsuit.
The plaintiff asked the court to block the proposed plan.

The Mosaic Company has performed well for its shareholders in the past. The Mosaic Co’s 12months Total Revenue increase over the past four filing periods from $5.773billion to lately $6.759billion. Its Net Income almost doubled over the same time frame and rose from $419.70million to $827.10million.

Shares of the Mosaic Company  traded during 2006 as low as $14.26 and increased to over $150 per MOS shares in June 08. MOS shares fell in the second half of 08 to under $25 and closed 08 at $34.60 per share. During 2009 MOS shares continued to increase and closed 09 at $59.73 and 2010 at $76.36 per share. During February 2011 MOS shares reached almost $90 per share.

Those who are purchased shares of the Mosaic Company (Public, NYSE-MOS) prior to Jan. 18, 2011 and currently those shares, have certain option and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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