Ackman Proposes $1 Billion Merger to Transform Howard Hughes into 'Modern-Day Berkshire Hathaway', Aiming for 38% to 69% Stake

Jan 13, 2025, 05:40 PM

Bill Ackman, through his investment firm Pershing Square Capital Management LP, has proposed a $1 billion merger of a newly formed subsidiary with Howard Hughes Holdings Inc. The aim is to transform Howard Hughes into a 'modern-day Berkshire Hathaway,' a conglomerate that would acquire controlling interests in operating companies. Ackman's firm is offering $85 per share for Howard Hughes, which represents a 38.3% premium over the stock price in August when Pershing Square first expressed interest. The investment firm currently holds a 37.6% stake in Howard Hughes and aims to increase it to as much as 69%. Howard Hughes, with a market capitalization of about $4 billion, is a company Ackman previously chaired. The deal would allow Howard Hughes to use its cash to invest in new companies and assets, with the goal of increasing its per-share intrinsic value at a high compound rate of return.