St. Joe (JOE) Responds to Fairholme Letter; Says Fairholme Hasn't Submitted Alternative Business Plan


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February 16, 2011 1:27 PM EST Send to a Friend
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The St. Joe Company (NYSE: JOE) has made the following response to an earlier disclosed letter sent by Fairholme Funds, Inc. (NASDAQ: FAIRX) seeking removal of all St. Joe's Board in order to replace then with Fairholme nominees.
  • “St. Joe adamantly opposes Fairholme’s efforts to obtain control of the Company without paying a control premium to all other shareholders. If Fairholme and its President, Bruce Berkowitz, want to take control of St. Joe, they should make an offer to all shareholders to buy it.

    Since the Fairholme representatives on the St. Joe Board voted to approve the decision to explore financial and strategic alternatives, we believe that Fairholme should support that process by participating in it, rather than seeking to obtain control of the Company through a costly and disruptive proxy contest.

    To date, Fairholme has not submitted for consideration any alternative business plan to enhance value for all St. Joe shareholders. If Fairholme and Mr. Berkowitz have an alternative business plan or strategic initiative that they believe to be in the best interests of all of St. Joe shareholders, they should propose it for consideration as part of the Company’s process for reviewing all strategic alternatives.”

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