Bill Ackman's Pershing Square Submits Revised Bid for Howard Hughes Holdings
Billionaire investor Bill Ackman's Pershing Square has submitted a revised offer to acquire 10 million newly issued shares of Howard Hughes Holdings (HHH) at $90 per share. This acquisition would give Pershing Square ownership of 48% of HHH's stock.
Under the terms of the deal, Ackman would assume the roles of Chairman and CEO of the real estate development company. Pershing Square aims to transform HHH into a diversified holding company akin to Berkshire Hathaway.
"We will mobilize Pershing Square's full resources to establish HHH as a diversified holding company, a modern-day Berkshire Hathaway," Ackman stated. "The new HHH will invest in controlling stakes in private and public companies that align with Pershing Square's criteria for business quality."
This represents Ackman's second bid for Howard Hughes. In January, he proposed acquiring 11.8 million shares at approximately $85 per share. HHH shares initially jumped by 6% after Ackman announced the revised offer on Tuesday, before falling by around 4% in after-hours trading.
Ackman has compared his approach to that of Warren Buffett with Berkshire Hathaway. Buffett transformed a textile manufacturer into a holding company with significant equity stakes in publicly traded companies like Apple and Bank of America.
"We will adopt similar, long-term, shareholder-oriented principles to Berkshire, and we intend to hold the stock indefinitely," Ackman stated.
Pershing Square held investments in Brookfield, Restaurant Brands, Chipotle, and Howard Hughes at the end of 2024, according to a Securities and Exchange Commission filing. Ackman has also recently acquired over 30 million shares of Uber.
Ackman will host a Q&A session for investors on Wednesday at 9 a.m. ET to discuss the proposed transaction.