The St. Joe Company (NYSE:JOE) Shares Soar on Termination of Fairholme Capital Standstill Agreement

On the news that The St. Joe Company (NYSE:JOE) Board of Directors have decided to terminate the standstill agreement with Bruce Berkowitz's Fairholme Capital, shares of the company soared on Wednesday.

The termination of the agreement is effective immediately.

A couple of the comments of the Board of St. Joe were that they didn't believe it was appropriate for Fairholme to be strung with the standstill when other shareholders in the company weren't.

They also said the long-term status of Fairholme as a shareholder was part of their decision. Fairholme owns just under 29 percent of the outstanding common stock of St. Joe.

Under terms of the agreement, Fairholme will be able to acquire over 30 percent of the non-voting shares of the company now.

The St. Joe Company closed Wednesday at $25.00, gaining $1.71, or 7.34 percent.