Posted at 9:32 a.m., Wednesday, October 11, 2006
Barnwell Industries shares soar after shakeup urged
Advertiser Staff
Shares of Barnwell Industries rose sharply today after the Honolulu-based oil and natural gas company's largest shareholder urged Barnwell to evaluate strategic alternatives, including the sale of its energy division, and implement a share-buyback program immediately.In a letter to Barnwell, Mercury Real Estate executives praised the energy company for its preliminary success unlocking the value of its real estate holdings in Hawaii and its oil and gas business in Canada.
"Although there remains substantial unrealized value in these assets," the letter states, "we believe the company's current corporate structure, egregious executive compensation and disparate business divisions are fundamentally flawed." Mercury Real Estate Advisors is an affiliate of Mercury Partners LLC, a real estate investment management company based in Greenwich, Conn. Shares of Barnwell Industries were up $2.46, to $21.45 in late trading on the American Stock Exchange.
