Finance
Ackman Dreams of ‘Modern-Day Berkshire’ With Howard Hughes Bid
- Pershing Square subsidiary would merge with real estate firm
- Pershing funds already own a nearly 38% stake in the company
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Pershing Square Capital Management LP proposed a deal to merge a newly formed subsidiary with Howard Hughes Holdings Inc. in an effort to build the real estate developer into a “modern-day” version of Warren Buffett’s conglomerate.
The investment firm run by Bill Ackman is offering Howard Hughes holders $85 a share, a majority of which would be paid in cash, the company said in the letter to investors posted on its website. That’s a 38.3% premium to Howard Hughes’s stock price in August, when Pershing Square expressed interest in a potential tie-up.