(Repeating to add Breakingviews link)
* St. Joe considering sale, Morgan Stanley advising
* Considering asset sales, strategic alliances
* Shares up 11.2 pct after hours
(Adds comment from Greenlight Capital spokesman; updates
NEW YORK, Feb 8 St. Joe Co (JOE.N), a Florida
real estate company targeted by famed hedge fund manager David
Einhorn, is considering a sale among other options.
St. Joe said in a statement on Tuesday that it would
consider options, including a revised business plan, operating
partnerships, joint ventures, strategic alliances, asset sales,
strategic acquisitions and a sale.
The company, which had a market capitalization of $2.7
billion as of Tuesday's stock market close, said it was being
advised by Morgan Stanley (MS.N). St. Joe shares were up $3.25,
or 11.2 percent, at $32.30 in thin after-hours trading. They
were up 13.6 percent earlier in the day.
(For a Breakingviews column please click [ID:nN08291656])
"With the company trading at more than three times its
value, it is easy to see why the Board wants to sell, but hard
to fathom why anyone would buy. The lack of cash flow creates a
particular challenge for any financial buyer," a spokesman for
Einhorn's Greenlight Capital said in an e-mailed statement on
Einhorn, who first rose to prominence for making a
prescient call on Lehman Brothers' accounting troubles before
its collapse, has criticized St. Joe's development plans.
He said in October that St. Joe was "stuck" after making an
aggressive bet on beachfront developments that have gone
"Management should sell the company, but it can't because
the stock is too high," he said in October.
Einhorn has held a short position on the stock.
CNBC reported on Monday that investor and director Bruce
Berkowitz, head of mutual fund Fairholme Funds Inc, would push
to restructure St. Joe's board.
Fairholme, which owns about 29 percent of St. Joe, has two
seats on the St. Joe board. St. Joe owns more than a
half-million acres of land in the Florida Panhandle.
Berkowitz was not immediately available for comment on
(Reporting by Jennifer Ablan, Megan Davies, Ben Berkowitz,
Jonathan Stempel and Clare Baldwin; Editing by Muralikumar
Anantharaman) ((firstname.lastname@example.org +1 646 223
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