Bill Ackman's Pershing Square Proposes Merger with Howard Hughes Holdings at $85 Per Share, Offering 38% Premium

Jan 13, 2025, 12:11 PM

Bill Ackman's Pershing Square Capital Management has proposed a merger with Howard Hughes Holdings, offering to acquire the real estate company at $85 per share. This proposal represents a 38% premium over the stock's price before the announcement. The deal includes a $1 billion cash offer and a $500 million share buyback, to be financed through bonds. Pershing Square, which already owns about 38% of Howard Hughes, plans to form a new subsidiary to facilitate the merger. Ackman has expressed dissatisfaction with Howard Hughes's stock performance despite recognizing the company's management and business progress. The merger aims to keep Howard Hughes's current leadership and strategy intact, with no changes intended for the organization or its employees.