Agrium faces big writedown

Article Excerpt

AGRIUM INC. $100 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 157.9 million; Market cap: $15.8 billion; SI Rating: Average) hopes to build a nitrogen plant on the north coast of Egypt. However, environmental opposition could force Agrium to re-locate the plant, sell its 60% stake to its state-owned joint venture partner, or abandon the project altogether. Agrium may have to write off the $280 million it has already spent on the project, unless it can reach a new agreement with the Egyptian government (all amounts except share price and market cap in U.S. dollars). Agrium earned $195 million or $1.23 a share in the three months ended March 31, 2008. Agrium is still a hold. hold…