SAN FRANCISCO (Thomson Financial) - Pico Holdings Inc. said Tuesday its
Swiss subsidiary, Global Equity AG, has sold its entire stake of 1.31 million
shares in Jungfraubahn Holding AG for 57.7 Swiss Francs a share, for gross
proceeds of about CHF75.8 million ($75.8 million).
The sale is expected to generate a pretax gain of about $45 million for the
quarter ending June 30, Pico said. However, the gain and related tax effects
will only have a marginal impact on the company's consolidated book value, as
most of the gain and related tax effects have already been recorded as a net
unrealized gain in previous accounting periods.
"Our decision to redeploy our capital is based in part on the opportunities
that we continue to see in our core land and water businesses," Pico President
and Chief Executive John Hart said in a statement.
Shares of La Jolla, Calif.-based Pico, a developer of real estate
properties, were down 84 cents, or about 2.3%, at $34.33.
Katherine Hunt
kh/vj
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