Pershing Square Revises Bid to Acquire Howard Hughes Holdings
Billionaire investor Bill Ackman's Pershing Square has submitted an updated offer to purchase 10 million newly issued shares of Howard Hughes Holdings (HHH) at $90 each. This acquisition would grant Pershing Square a 48% stake in the company.
As part of the agreement, Ackman would assume the roles of Chairman and CEO of the real estate developer. In a statement, Ackman expressed his intention to "make available the full resources of Pershing Square to HHH to build a diversified holding company, similar to a modern-day Berkshire Hathaway."
The new HHH aims to acquire controlling interests in private and public companies that align with Pershing Square's criteria for business quality. The bid marks Ackman's second attempt to acquire Howard Hughes. In January, he proposed purchasing 11.8 million shares for approximately $85 per share.
After Ackman's initial announcement, Howard Hughes shares surged by 6% during afternoon trading. However, they declined by 4% in after-hours trading once the specifics of the proposal were revealed.
Ackman's approach draws inspiration from Warren Buffett's strategy for Berkshire Hathaway, where a textile manufacturer was transformed into a holding company with investments in major equities like Apple and Bank of America. Pershing Square intends to adopt similar principles by prioritizing long-term shareholder value and perpetuating ownership.
As of December 31, 2024, Pershing Square held stakes in Brookfield, Restaurant Brands, Chipotle, and Howard Hughes. Ackman additionally disclosed his acquisition of over 30 million Uber shares in early January.
Investors are invited to participate in a question-and-answer session with Ackman regarding the proposed deal on X, scheduled for Wednesday morning at 9 a.m. ET.