Very interesting, curious, and gutsy. He's either bullish, or it's an accounting play, or both. Berkowitz has to currently mark his minority interest in JOE to market. If JOE becomes a subsidiary of Fairholme, Berkowitz can carry his interest at book value, thus insulatilng his investment fund from daily market gyrations... Europe is a basket case, Florida should benefit from money leaving Europe for the US.
CNBC video about this announcement (video will play after the commercial). Keep in mind, JOE is down almost 2 handles since this video was made on Friday. If I was a shareholder in Berkowitz' funds, I'd be more than a little concerned that he's taken his eye off the ball in an effort to become a Florida swampland land baron.