Mon Jan 13 12:00:00 UTC 2025: ## Ackman’s Pershing Square Bids to Take Over Howard Hughes Holdings for $85 a Share
**New York (CNBC)** – Billionaire investor Bill Ackman’s Pershing Square Capital Management is launching a bid to acquire the remaining shares of Howard Hughes Corporation it doesn’t already own, offering $85 per share. This represents a significant premium of 38.3% over the unaffected stock price and 18.4% over Friday’s closing price.
In a letter to Howard Hughes’ board, Ackman expressed dissatisfaction with the company’s stock performance despite acknowledging its business progress since its IPO over 14 years ago. Pershing Square currently holds approximately 38% of Howard Hughes.
The proposed deal would see the creation of a new Pershing Square subsidiary which would merge with Howard Hughes. Shareholders would have the option to receive a majority of their consideration in cash, with the balance in stock of the post-merger company.
Ackman assured the board and employees that the deal would not lead to any changes in Howard Hughes’ organization, its employees, or its long-term strategy. He emphasized his high regard for the company’s management team and employees.
Howard Hughes shares surged 11% in premarket trading following the announcement. CNBC has reached out to Howard Hughes for comment. Pershing’s initial investment in Howard Hughes in 2010 yielded a 35% total return, but Ackman noted this translated to a low 2.2% compound annual return, highlighting the underperformance of the stock. The company has also not paid any dividends since its inception.
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