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Bill Ackman’s Pershing Square has offered to buy the shares it does not 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 that Howard Hughes, which owns property in Las Vegas, Texas and Hawaii, is on the verge of generating the cash flow from its real estate to begin making acquisitions of other companies or property operations.
Pershing Square is offering Howard Hughes shareholders $85 per share, Ackman said in a letter to the company’s board on Monday. The shares closed on Friday at $71.78, giving the company’s equity a value of $3.6bn.
Pershing already owns almost 38 per cent of Howard Hughes’s shares.
Shares in Howard Hughes were up more than 10 per cent in pre-market trading following the announcement.
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