St. Joe (JOE) Surges On Reports Largest Holder Berkowitz Seeks Board Takeover
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Shares of The St. Joe Company (NYSE: JOE) are surging higher today on reports large holder and director Bruce Berkowitz is seeking a major restructuring of the board.
According to CNBC, Berkowitz, who owns nearly 30 percent of the stock though his Fairholme Capital fund, is proposing to remove Chairman Hugh Durden and three other directors.
Under the plan, Berkowitz would take the Chairman and Fairholme's President Charles Fernandez would become vice chairman. Both would forgo all compensation until the company breaks even, the report said.
Berkowitz seeks to return the company to profits by cutting $60 million dollars in expenses. He also could hire a financial advisor to explore possible bolt on acquisitions or real estate joint ventures.
Because Berkowitz is a 13D filer on St. Joe, he would likely have to legally update his 13D to discuss his new plans with the company over the next few days.
St. Joe has declined to comment on the report.
Shares of The St. Joe Co. are up 10 percent to $29.79 in early action.
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According to CNBC, Berkowitz, who owns nearly 30 percent of the stock though his Fairholme Capital fund, is proposing to remove Chairman Hugh Durden and three other directors.
Under the plan, Berkowitz would take the Chairman and Fairholme's President Charles Fernandez would become vice chairman. Both would forgo all compensation until the company breaks even, the report said.
Berkowitz seeks to return the company to profits by cutting $60 million dollars in expenses. He also could hire a financial advisor to explore possible bolt on acquisitions or real estate joint ventures.
Because Berkowitz is a 13D filer on St. Joe, he would likely have to legally update his 13D to discuss his new plans with the company over the next few days.
St. Joe has declined to comment on the report.
Shares of The St. Joe Co. are up 10 percent to $29.79 in early action.
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