Quantcast

Tuesday, October 21, 2014         

 Print   Email   Comment | View 0 Comments   Most Popular   Save   Post   Retweet

Alexander & Baldwin stock jumps 19% after talk of break up

By Andrew Gomes

POSTED:
LAST UPDATED: 07:31 p.m. HST, Apr 01, 2011



Shares of Alexander & Baldwin stock soared 19 percent today to close up $8.82 at $54.47 following yesterday's announcement that a New York hedge fund manager and a partner bought up shares to become A&B's largest owner.

The closing price was the highest since Aug. 10, 2007, when A&B's stock closed at $55 on the New York Stock Exchange.

Bloomberg News reported that Wells Fargo Securities, which downgraded A&B's stock last week, raised its expectations for the stock and estimated A&B's "break up" value -- that is splitting apart core divisions of ocean cargo transportation, commercial real estate and agribusiness potentially to be sold -- at about $54 a share.

Stock analysts and some company insiders anticipate that the hedge fund manager, Bill Ackman of Pershing Square Capital Management LP, will seek to break up A&B.

Ackman's firm, along with former Pershing Square partner Richard McGuire of San Francisco-based Marcato Capital Management LLC, disclosed yesterday after the stock market closed that they recently bought $168 million of A&B's stock to give them a 9.9 percent stake.

Ackman and McGuire paid an average of $41.04 for their shares, making their stake worth about $224 million at today's closing price, or $56 million more than the average paid.

 






 Print   Email   Comment | View 0 Comments   Most Popular   Save   Post   Retweet

COMMENTS
(0)
You must be subscribed to participate in discussions


IN OTHER NEWS
Breaking News
Blogs
Political Radar
`Dawn’

Political Radar
`Lean Democratic’

The Green Leaf
Honu and Hina

Volley Shots
10-21: Tuesday checkin

Warrior Beat
Back in Manoa

Political Radar
Same

Political Radar
Declined