Billionaire Investor Ackman's Pershing Square Submits Revised Bid for Howard Hughes Holdings
Pershing Square, led by billionaire investor Bill Ackman, has submitted an updated offer to acquire 10 million newly issued shares of Howard Hughes Holdings (HHH) at $90 per share. This acquisition would result in Pershing Square owning approximately 48% of HHH's outstanding shares.
As part of the proposed transaction, Ackman would assume the roles of Chairman and CEO of HHH, a leading real estate developer. In an online post, Ackman stated that Pershing Square aims to transform HHH into a diversified holding company similar to Berkshire Hathaway.
"We will deploy Pershing Square's substantial resources to establish HHH as a dominant player in the industry, with a focus on acquiring controlling interests in exceptional private and public companies," Ackman wrote.
This represents Ackman's second attempt to acquire a significant stake in HHH. In January, Pershing Square proposed purchasing 11.8 million shares at approximately $85 per share.
Following Ackman's announcement, HHH shares exhibited a 6% surge in afternoon trading. However, after the specific details of the plan were disclosed, the stock price experienced a 4% decline in after-hours trading.
Ackman's approach bears similarities to Warren Buffett's strategy for Berkshire Hathaway. Buffett transformed a textile company into a diversified holding company with interests in numerous publicly traded entities, including Apple and Bank of America.
"Pershing Square will adopt a long-term, shareholder-centric approach akin to Berkshire's," Ackman stated. "We intend to hold HHH shares indefinitely."
As of December 2024, Pershing Square's portfolio included stakes in Brookfield, Restaurant Brands, Chipotle, and HHH. Ackman also disclosed that in early January, he acquired over 30 million shares of Uber.
Interested investors have the opportunity to participate in a Q&A session with Ackman regarding the proposed transaction on Wednesday at 9 a.m. ET.