Ackman's Pershing Square Offers $85 per Share for Howard Hughes, Aiming to Create 'Modern-Day Berkshire Hathaway'

Jan 13, 2025, 04:51 PM

Bill Ackman's Pershing Square has proposed to acquire Howard Hughes Holdings for $85 per share, representing a 38% premium over the pre-announcement price. The $1.5 billion deal includes a $1 billion cash offer and a $500 million share buyback financed through bonds. Ackman aims to transform Howard Hughes Holdings into a 'modern-day Berkshire Hathaway' by merging it with a newly formed subsidiary of Pershing Square. Pershing Square currently owns 37.6% of Howard Hughes Holdings and seeks to increase its ownership to 69.2%. Following the announcement, $HHH shares rose 9.4% in pre-market trading. Some shareholders believe the offer undervalues the company and is an attempt to gain control on the cheap.