Bill Ackman Targets Howard Hughes as Next Berkshire Hathaway

Bill Ackman, the billionaire investor, is aiming to create a modern-day equivalent to Warren Buffett's Berkshire Hathaway by acquiring Howard Hughes Corporation.

Background:

* Ackman's Pershing Square has raised its takeover offer for Howard Hughes to $90 per share.
* Ackman previously served as Howard Hughes' board chairman from 2010 to 2024.

Inspiration:

* Ackman cites Buffett's Berkshire Hathaway as an inspiration, noting its transformation from a textile company to a diversified holding company.
* Under Ackman's proposed takeover, Howard Hughes would focus on acquiring controlling interests in operating companies.

Proposal Overview:

* Pershing Square proposes to acquire 10 million newly issued Howard Hughes shares at $90 per share.
* Ackman would become chairman and CEO of Howard Hughes upon completion of the takeover.

Market Reaction:

* Howard Hughes shares surged 6.8% on Tuesday following Ackman's announcement.
* However, shares fell 4.6% in after-hours trading, indicating investor disappointment with the revised offer.

Analyst Views:

* Piper Sandler analysts believe the offer falls short of Howard Hughes' net asset value and is unlikely to be accepted by the company's independent board.
* John Kim of BMO Capital Markets questions the investment strategy behind the revised offer.

Next Steps:

* Howard Hughes has confirmed receipt of the offer and is reviewing it.
* Ackman and Pershing Square are expected to continue exploring various options as they pursue their goal of transforming Howard Hughes into the next Berkshire Hathaway.