Bill Ackman's Pershing Square Proposes $1B Merger With Howard Hughes at $85 Per Share, Shares Surge 10%

Jan 13, 2025, 05:58 PM

Bill Ackman's Pershing Square Capital Management has proposed a merger with Howard Hughes Holdings Inc., offering $85 per share for the real estate developer. The proposal includes a $1 billion cash offer for 11.8 million shares not already owned by Pershing Square, and a $500 million share buyback by Howard Hughes, financed through bonds. Ackman's firm currently holds a 38% stake in Howard Hughes. The merger aims to transform Howard Hughes into a diversified holding company, akin to a 'modern-day Berkshire Hathaway,' with the goal of acquiring controlling interests in operating companies. Howard Hughes Holdings has confirmed receipt of the unsolicited proposal and a special committee will evaluate the terms and next steps. The offer represents a 38.3% premium to the unaffected stock price and an 18.4% premium to the closing price on the previous Friday. Howard Hughes shares surged 10% to $78.95 a share following the announcement.