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Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in NYC on Sept. 28th, 2023.
Adam Jeffery | CNBC
Bill Ackman’s Pershing Square is offering to takeover the rest of Howard Hughes Holdings the investment firm does not own for $85 a share.
“While we are pleased with the substantial business progress Howard Hughes Holdings has made over the more than 14 years since it went public, we, like other long-term shareholders and this board, have been displeased with the Company’s stock price performance,” wrote Ackman in a letter to the Howard Hughes board.
Ackman proposed forming a new subsidiary of Pershing, which currently owns about 38% of Howard Hughes, that would merge with the real estate developer based on The Woodlands, Texas.
“Stockholders would have the option of receiving more than a majority of their merger consideration in cash at $85.00 per share – representing a premium of 38.3% to the unaffected stock price and a premium of 18.4% to the closing price this past Friday – and the balance in stock of the post-merger company, said the letter.
Howard Hughes shares jumped 11% to $79.67 a share in premarket trading on the news. CNBC was reaching out to the company for comment.
