Tag: ALEX

April 1, 2011 General Ag News and Notes Post a Comment

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

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 Sept. 9, 2007, when A&B’s stock closed at $57.73 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.

Alexander & Baldwin stock jumps 19% after talk of break up – Hawaii News – Staradvertiser.com

April 1, 2011 General Ag News and Notes Post a Comment

Stock buy foments talk of local firm’s breakup

One of Hawaii’s last venerable Big Five companies, Alexander & Baldwin Inc., could be under pressure to break itself up.

A New York hedge fund manager known to agitate for change in his investment targets bought nearly 10 percent of A&B along with a partner, it was announced yesterday. The purchase triggered expectations the 141-year-old kamaaina company will be split into pieces to elevate stock value.

Neither A&B nor the hedge funds would disclose what the intent of the A&B stock purchase — a $168 million deal — might be yesterday.

“We expect to have a constructive dialogue with them as we do with all of our shareholders,” said Suzy Hollinger, A&B’s director of investor relations.

But stock analysts with insights to A&B and people with ties to the 2,300-employee company say the play almost certainly is a breakup of the conglomerate’s three core businesses — ocean cargo transportation, commercial real estate and agriculture.

“Are the parts worth more than the whole? That’s what this comes down to,” said local stock analyst Randy Havre, echoing views of two other analysts who closely follow A&B.

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March 31, 2011 General Ag News and Notes Post a Comment

Mainland firms buy 9.9% stake in A&B

Two mainland investment firms have combined to purchase a 9.9 percent stake in Honolulu-based Alexander & Baldwin Co., according to a regulatory filing today.

New York-based Pershing Square Capital Management LP, led by activist hedge fund manager Bill Ackman, bought an 8.6 percent stake and San Francisco-based Marcato Capital Management LLC, led by Richard McGuire, acquired a 1.3 percent stake.

Mainland firms buy 9.9% stake in A&B – Hawaii News – Staradvertiser.com

March 30, 2011 General Ag News and Notes Post a Comment

Italian firm assumes operations of Kauai Coffee Co.

An affiliate of an Italian beverage company has completed its acquisition of Kauai Coffee Co. operations from Alexander & Baldwin Inc.

The deal, announced in December, involves a subsidiary of Massimo Zanetti Beverage Group buying the Kauai Coffee brand, retaining all employees, leasing the 3,000-acre plantation and distributing the coffee through its global sales channels.

Financial terms of the acquisition weren’t disclosed.

Massimo Zanetti expects to expand recognition of the brand, which will be added to its collection of green coffee operations in Brazil, Costa Rica, Honduras, Vietnam and Indonesia.

“We are excited to welcome Kauai Coffee into our portfolio of prestigious brands,” John Boyle, chief operating officer of Massimo Zanetti Beverage USA, said in a statement. “It’s a wonderful new entry point for us into the growing super-premium coffee segment.

Italian firm assumes operations of Kauai Coffee Co. – Hawaii News – Staradvertiser.com

February 3, 2011 General Ag News and Notes Post a Comment

Alexander & Baldwin profits rise

Alexander & Baldwin Inc. earnings were about flat in the last three months of 2010, but bigger gains earlier in the year enabled the diversified Honolulu-based company to more than double its full-year profit.

A&B reported 2010 net income of $92.1 million, up from $44.2 million the year before.

Fourth-quarter net income was $20.2 million, barely up from $20.1 million in the same quarter in 2009.

Revenue in the fourth quarter totaled $461.4 million, compared with $362.9 million in the year-ago quarter. Full-year revenue totaled $1.6 billion, up from $1.4 billion in 2009.

A&B said its profit was principally driven by ocean cargo transportation subsidiary Matson Navigation Co. operations in China, real estate sales and a turnaround in its sugar business on Maui.

Alexander & Baldwin profits rise – Hawaii News – Staradvertiser.com

December 3, 2010 General Ag News and Notes Post a Comment

Sweet Smell of Success

The rain came down. The price went up, and Hawaiian Commercial & Sugar Co. finished the year with a much improved crop.

The final raw sugar shipment was loaded at Kahului Harbor’s Pier One on Wednesday and Thursday.

The harvest was just shy of 172,000 tons, much better than the 127,000 tons in 2009, but well short of the 200,000 tons the plantation can make in a good year.

In a telephone interview from New York on Thursday, HC&S General Manager Chris Benjamin said that although there is still “a ways to go,” the improved crop and better world prices take the immediate pressure off the plantation.

A year ago, after experiencing heavy losses attributed to a long drought, the directors of Alexander & Baldwin took a hard look at HC&S. The 37,000-acre plantation was the origin of the A&B conglomerate, but today it accounts for only about 7 percent of revenues.

The board approved continuation of the business only until the end of this year, pending improved results.

Financial results won’t be published until next year, but Benjamin said he believes that the board is already satisfied that the operation is on the right track.

At this week’s price of nearly 40 cents per pound of raw sugar (in New York), the crop would be worth more than $130 million, not counting molasses and electricity byproduct revenue, plus the premium for the part of the crop sold as specialty sugars.

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