Bill Ackman Proposes Merger of Pershing Square Subsidiary with Howard Hughes Holdings at $85 per Share, Aiming for Modern-Day Berkshire Hathaway

Jan 13, 2025, 01:08 PM

Bill Ackman's Pershing Square Capital Management, which currently owns 37.6% of Howard Hughes Holdings, has proposed a merger between a newly formed subsidiary and the real estate developer, offering $85 per share to current shareholders. This proposal represents a 38.3% premium over the stock price before the announcement. Ackman, who has been a significant shareholder in Howard Hughes since 2010, aims to transform the company into a 'modern-day Berkshire Hathaway.' The deal includes Pershing Square acquiring about 11.8 million shares and Howard Hughes repurchasing $500 million in shares, financed through newly issued bonds. Howard Hughes shares rose 9.4% to $78.50 in pre-market trading following the announcement. Ackman has expressed his intention to keep the current leadership, including CEO David O'Reilly, and employees of Howard Hughes intact, with no changes to the company's long-term strategy after 14 years of investment.