Bruce Berkowitz won the battle to change management at St. Joe Co ., the money-losing Florida landowner. Now, he has to figure out how to make its forests and swamps profitable as short sellers bet against the shares.
St. Joe Co., northern Florida’s largest landholder, fell the most in almost nine months in the first trading day since the company said it faces a formal investigation by the U.S. Securities and Exchange Commission.
Bruce Berkowitz and Charles M. Fernandez of Fairholme Capital Management LLC, St. Joe Co.’s biggest shareholder, resigned from the developer’s board because of disagreements over its nominating and governance process.
St. Joe Co. , the Florida developer criticized by hedge-fund manager David Einhorn , fell 7 percent in New York trading after the company said it hired Morgan Stanley to explore a possible merger or sale.
St. Joe Co. , the largest private landholder in northern Florida, said it faces an informal inquiry by the U.S. Securities and Exchange Commission over its policies for impairing investment in real estate assets.
St. Joe Co. said Chief Executive Officer Britt Greene and three other board members will resign, marking a victory for Bruce Berkowitz ’s Fairholme Capital Management LLC in a battle for control of the Florida landowner.
Bruce Berkowitz’s Fairholme Capital Management LLC and St. Joe Co. are in discussions about the composition of the company’s board and management after Berkowitz began an effort to elect new directors.