Oct. 20 (Bloomberg) -- Mosaic Co. rose 16 percent in New York on speculation Cargill Inc. may take advantage of a plunge in the crop-nutrient maker's shares this year to increase its majority stake.

Mosaic, the world's largest producer of phosphates, gained $5.27 to $38.93 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have lost 59 percent this year.

Privately held Cargill agreed to freeze its stake in Mosaic at 64 percent four years ago when the Plymouth, Minnesota-based company was formed from the combination of IMC Global Inc. and Cargill's crop-nutrition business. That standstill agreement ends on Oct. 22.

``The expiration sets up the possibility that Cargill could accept the gift that `Mr. Market' is presenting: accretively increasing its ownership stake in Mosaic,'' Mark Gulley, an analyst at Soleil Securities, said today in a note to clients.

Bill Brady, a spokesman for Minnetonka, Minnesota-based Cargill, declined to comment today on the pending expiration of the agreement.

Cargill is the second-largest privately held U.S. company after Koch Industries Inc., according to Forbes magazine.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net.

Last Updated: October 20, 2008 16:37 EDT