The board of directors of St. Joe Company is meeting today to discuss and decide on a proposal put forward by Fairholme’s Bruce Berkowitz, who through his mutual fund, controls about 30% of the company’s shares outstanding.
Berkowitz is proposing to overhaul the board. In his proposal, he would become chairman of St. Joe and Charles Fernadez would assume the vice chairman role. In addition, Fairholme recruited Howard Frank, COO of Carnival Corporation (CCL), and Florida Fish and Wildlife Conservation Commission Chairman Rodney Barreto to join the board.
St. Joe Company has been the center of debate between David Einhorn of Greenlight, the short seller and Berkowitz the long term investor.
Last week, during a Q&A session in the annual investment management conference in New York, when asked, Berkowitz said: "I don't have a lot to disagree with David about". Despite the vast land it owns and beautiful beaches, St. Joe is not generating cash or profits. In Berkowitz’s own words, it's "just sort of dead in the water."
But that is about to change. Taking about the possibilities, Berkowitz said:”Outsourcing the entire operations of the company, merging with another company, being acquired by another company. Acquiring another company. possibilities are vast. But before you can do any of this, the first thing you have to do is stop the bleeding”.
Fortune has a good write-up on the story and the article include the following presentation produced by Fairholme on the St. Joe’s land and properties:
St. Joe
Berkowitz is proposing to overhaul the board. In his proposal, he would become chairman of St. Joe and Charles Fernadez would assume the vice chairman role. In addition, Fairholme recruited Howard Frank, COO of Carnival Corporation (CCL), and Florida Fish and Wildlife Conservation Commission Chairman Rodney Barreto to join the board.
St. Joe Company has been the center of debate between David Einhorn of Greenlight, the short seller and Berkowitz the long term investor.
Last week, during a Q&A session in the annual investment management conference in New York, when asked, Berkowitz said: "I don't have a lot to disagree with David about". Despite the vast land it owns and beautiful beaches, St. Joe is not generating cash or profits. In Berkowitz’s own words, it's "just sort of dead in the water."
But that is about to change. Taking about the possibilities, Berkowitz said:”Outsourcing the entire operations of the company, merging with another company, being acquired by another company. Acquiring another company. possibilities are vast. But before you can do any of this, the first thing you have to do is stop the bleeding”.
Fortune has a good write-up on the story and the article include the following presentation produced by Fairholme on the St. Joe’s land and properties:
