Pershing Square Proposes Revised Bid to Acquire 48% Stake in Howard Hughes Holdings
Billionaire investor Bill Ackman's Pershing Square has submitted a revised bid to purchase 10 million newly issued shares of Howard Hughes Holdings (HHH) at $90 each. This purchase would grant Pershing Square ownership of 48% of the company's stock.
As part of the deal, Ackman would become chairman and CEO of HHH. According to Ackman's post on X, Pershing Square plans to transform HHH into a diversified holding company similar to Berkshire Hathaway.
"The new HHH will acquire controlling interests in private and public companies that meet Pershing Square's criteria for business quality," Ackman wrote. This marks Ackman's second bid for Howard Hughes. In January, he proposed buying 11.8 million shares at $85 per share.
Howard Hughes shares rose by approximately 6% in afternoon trading following the announcement of Ackman's revised bid. However, they fell by 4% in after-hours trading once details of the plan were released.
Ackman has compared Pershing Square's approach to that of Warren Buffett with Berkshire Hathaway, which has evolved from a textile manufacturer into a holding company with stakes in major corporations such as Apple and Bank of America.
"We will adopt similar, long-term, shareholder-oriented principles to Berkshire, and intend to hold the stock forever," Ackman stated in his pre-announcement post.
Pershing Square also announced that Ackman will host a Q&A session with investors on X at 9 a.m. ET on Wednesday to discuss the proposed deal.