Guest Bronco Posted February 15, 2011 Share Posted February 15, 2011 Is a mutual fund allowed to buy 100% of a company? I would assume you lose RIC status on that. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted February 16, 2011 Share Posted February 16, 2011 Bruce is getting hardcore in his fight against the board: http://bit.ly/eLhqG5 The Fairholme Fund is starting a shareholder process to replace the existing board of St Joe. This was not a decision made lightly. We are not activists. We always try to support the boards, management and shareholders of our portfolio companies. We like when everyone wins. When we saw problems at St. Joe, we tried to make constructive changes within the board structure. We ultimately came to the conclusion that this was not possible.We believe in the following fundamental concepts: • St. Joe belongs to its shareholders, not its board or management • St. Joe management plans must reflect business reality • St. Joe management must stop selling cheap to fund wasteful spending • St. Joe management must be open, transparent and accountable • St. Joe management must feel the pain and joy of their constituents • St. Joe directors must lead by example Who should be on the St. Joe board? It is your company as much as The Fairholme Fund’s roughly 500,000 shareholders. Let’s all decide. Link to comment Share on other sites More sharing options...
Grenville Posted February 16, 2011 Share Posted February 16, 2011 I am impressed with Bruce. Here is his letter. Will be fun to watch. http://www.sec.gov/Archives/edgar/data/745308/000119312511036957/dex991.htm Link to comment Share on other sites More sharing options...
Myth465 Posted February 16, 2011 Share Posted February 16, 2011 I am impressed with Bruce. Here is his letter. Will be fun to watch. http://www.sec.gov/Archives/edgar/data/745308/000119312511036957/dex991.htm Again here is a man you have to respect. Hell even I forget this sometimes and 100% of my net worth is in stocks. St. Joe belongs to its shareholders, not its board or management Link to comment Share on other sites More sharing options...
txlaw Posted February 16, 2011 Share Posted February 16, 2011 Great letter. Apparently, Bruce B is on CNBC right now discussing the poison pill that management just adopted. Link to comment Share on other sites More sharing options...
bargainman Posted February 16, 2011 Share Posted February 16, 2011 This is mildly amusing.. http://biz.yahoo.com/bw/110216/20110216006657.html?.v=1 “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.” Link to comment Share on other sites More sharing options...
Rabbitisrich Posted February 17, 2011 Share Posted February 17, 2011 Has Berkowitz outlined the operational changes he wants to enact? Fairholme responds: Andy Dietderich, principal outside counsel to Fairholme Funds, said “The Company did not read Fairholme’s release. A take-over? How can you take over a company by asking the other shareholders to choose directors? That’s the opposite of a take-over. Fairholme Funds has absolutely no intention of taking over anything. We are giving the company back to all its shareholders. It’s a dividend of governance.” Link to comment Share on other sites More sharing options...
bargainman Posted February 17, 2011 Share Posted February 17, 2011 I'm surprised there isn't more commentary about this on this board. Yeah I think Joe's board response is amusing, ie ridiculous. It's amazing how boards under pressure by an activist always sound so shocked and incensed (Bruce isn't really an activist either!). The amazing thing is that they are pretending to be on the side of the shareholders which is hilarious because.. Bruce *is* the shareholder!! I mean he owns 30% of the company! The comment about 'controlling' the company is just ludicrous. He owns 30% of the shares, he should have a major say as it is. Also their poison pill doesn't make sense in that it doesn't protect them at all. I'm pretty sure that Bruce wouldn't buy more shares, he doesn't have to! He just needs to call up TRowe and the other couple mutual funds and he'll win. Amazing.. when push comes to shove what management will do and say. I'm not sure what Bruce has wrt operational changes, but my first bet is 'stop the bleeding'.. I mean they lost almost 100 million last year and their CEO makes 1.5 million? I would guess he asked everyone there to take a salary cut and they didn't want to. Link to comment Share on other sites More sharing options...
Myth465 Posted February 17, 2011 Share Posted February 17, 2011 Fairholme response. This is getting interesting. That’s the opposite of a take-over. Fairholme Funds has absolutely no intention of taking over anything. We are giving the company back to all its shareholders. It’s a dividend of governance.” http://www.gurufocus.com/news.php?id=122772 Gives short sellers some credit. “This is not about strategic alternatives. This is about who is running the company. The board is hiding behind a false sale process. The business plan is broke. No one will buy it until it is fixed. I’m surprised Morgan Stanley is playing along. The only purpose of this exercise is to entrench the board. Is Morgan Stanley not collecting fees for that? No counterparty will take this board or management seriously. They have no mandate and must go.” Link to comment Share on other sites More sharing options...
Buffetteer Posted February 17, 2011 Author Share Posted February 17, 2011 I agree, the board must go and go now. Berkowitz makes a great point in saying their resistance will only cost the shareholders money. It's inevitable, BB will win the proxy fight, the board should just accept it and resign. Link to comment Share on other sites More sharing options...
Myth465 Posted February 18, 2011 Share Posted February 18, 2011 More color. http://www.gurufocus.com/news.php?id=122821 They will lose the proxy fight, and will waste millions doing it. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted September 16, 2011 Share Posted September 16, 2011 Fairholme to take stake in St. Joe to 50% http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/09/16/financial/f063659D95.DTL St. Joe Co. disclosed in a regulatory filing Friday that it entered a stockholder deal with its biggest shareholder, Fairholme Funds Inc., and Fairholme Capital, that will allow it to boost its ownership stake to up to 50 percent. Fairholme had been approved to buy up to a 30 percent stake previously. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted December 13, 2011 Share Posted December 13, 2011 Yes, this is an old thread but the title coincidentally is perfect for today... :) http://www.fool.com/investing/general/2011/12/13/st-joe-shares-popped-what-you-need-to-know.aspx At noon on Wall Street 1.5 million shares had already traded hands, more than twice the daily volume. There are a couple of things driving the stock, including the upcoming options expiration on Friday and a high short interest. An even 63% of St. Joe's float is sold short, making for a quick short squeeze when option volume spikes. That type of short interest can make for wild movements in the days before options expire, like they will on Friday. Link to comment Share on other sites More sharing options...
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