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Bill Ackman’s Pershing Square has offered to buy the shares it doesn’t already own in real estate developer Howard Hughes Holdings, in a move the billionaire investor suggested could turn the Texas-based holding company into a “modern-day Berkshire Hathaway.”
Ackman believes Howard Hughes, which owns properties in Las Vegas, Texas and Hawaii, is on the verge of generating cash flow from its properties to begin acquisitions of other companies or property operations.
Pershing Square is offering Howard Hughes shareholders $85 a share, Ackman said in a letter to the company’s board on Monday. Shares closed Friday at $71.78, giving the company’s equity a value of $3.6 billion.
Pershing already owns nearly 38 percent of Howard Hughes’ stock.
Howard Hughes shares rose more than 10 percent in premarket trading after the announcement.
This is a developing story
