UPDATE 4-St Joe CEO resigns, win for Fairholme's Berkowitz

Mon Feb 28, 2011 9:07pm GMT

[-] Text [+]

* St Joe replaces CEO, Fairholme to add 4 directors

* Fairholme's Berkowitz has battled Greenlight's Einhorn

* Shares end 3 pct lower (Adds analyst comment, background, adds closing stock price)

By Jonathan Stempel and Ilaina Jonas

NEW YORK, Feb 28 (Reuters) - Mutual fund manager Bruce Berkowitz got a big victory in his quest to shake up money-losing Florida landowner St Joe Co (JOE.N: Quote), winning the resignation of its chief executive and gaining a majority on its board of directors.

Chief Executive Britt Greene is stepping down this week "in light of the feedback the board of directors has received," St. Joe Chairman Hugh Durden said in a statement.

Berkowitz, whose Fairholme Capital Management LLC is St. Joe's largest shareholder, had quit the company's board two weeks ago amid disagreements over strategy and executive pay.

St. Joe has lost money for 10 straight quarters. It has also become a target of hedge fund manager David Einhorn, whose firm Greenlight Capital LLC has been shorting the company's shares, betting they will fall.

Einhorn has argued St. Joe is significantly overvaluing its holdings. These include roughly 576,000 acres in Florida, one of the nation's hardest-hit real estate markets. Continued...

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