Pershing Square Acquires Stake in Howard Hughes Holdings
Billionaire investor Bill Ackman's investment firm, Pershing Square, has proposed a revised bid to purchase 10 million newly issued shares of Howard Hughes Holdings (HHH) at $90 per share. The transaction would grant Pershing Square ownership of 48% of HHH's stock.
As part of the agreement, Ackman would become the real estate developer's chairman and CEO. In a statement, Ackman expressed his intention to transform HHH into a diversified holding company akin to Berkshire Hathaway.
"We will acquire controlling interests in private and public companies that meet Pershing Square's criteria for business quality," Ackman stated.
This marks Ackman's second bid for HHH. In January, he proposed purchasing 11.8 million shares at approximately $85 per share. HHH's shares initially rose 6% in afternoon trading following Ackman's announcement. However, they subsequently declined by 4% in after-hours trading.
Ackman has likened Pershing Square's approach to that of Warren Buffett's Berkshire Hathaway, which has evolved from a textile manufacturer into a holding company with significant stakes in companies such as Apple and Bank of America.
"We intend to adopt similar, long-term principles and hold the stock indefinitely," Ackman said.
As of December 31, 2024, Pershing Square held stakes in companies including Brookfield, Restaurant Brands, Chipotle, and Howard Hughes.