Bill Ackman, CEO of Pershing Square Capital Management, speaks during an interview for an episode of “The David Rubenstein Show: peer-to-peer conversations” in New York on November 28, 2023.
Jeenah Moon | Bloomberg | Getty images
Bill Ackman van Pershing Square has his takeover bid for Howard Hughes Holdings To create a “modern” Berkshire Hathaway.
The investor of billionaire said on Tuesday that his company submitted a proposal to acquire 10 million newly issued Howard Hughes shares for $ 90 per share. In January, Ackman proposed to form a new subsidiary of Pershing to merge with Howard Hughes, and offers the current holders $ 85 per share.
If the newly proposed transaction goes through, Pershing Square has 48% of the real estate developer in the Woodlands, Texas. The revised transaction does not require approvals for legal, shareholders vote or financing, so it can be completed within a few weeks.
Shard Hughes shares fell nearly 5% in long -term trade after the news. The share had closed 6.8% at $ 80.60 pending the announcement.
Ackman becomes chairman and CEO of Howard Hughes when the deal flourishes. Pershing Square would receive an annual fee, paid every three -monthly, of 1.5% of the share capitalization of Howard Hughes.
“We will make the full resources of Pershing Square available to HHH to build a diversified holding company, whether one could say, a modern Berkshire Hathaway,” said Ackman in a post on social media site X. “The new HHH will acquire Control of interests in private and public companies that meet the criteria of Pershing Square for the business quality. “
Ackman said that he took inspiration through the unusual career path of the legendary 'Oracle of Omaha'. The 94-year-old Warren Buffett started essentially as an activist investor and hedge fund manager who led a series of private partnerships, until the 1960s when he closed his partnerships and the control of Berkshire Hathaway, a struggling textile company, took control.
Nowadays Berkshire is worth $ 1 trillion with companies in industries, including insurance, energy, railway and retail, as well as a huge stock portfolio and more than $ 300 billion in cash.
Ackman said that Howard Hughes 'planned communities' such as the forests in Houston and Summerlin in Las Vegas will continue to develop and possess.
“The possession of small and growing MPCs that will eventually become large cities in the best pro-business markets in the country is a large company in the long term,” he said in the post. “It's a lot better than a dying textile company.”
