On Monday, Pershing Square Capital Management CEO Bill Ackman proposed a merger between Howard Hughes Holdings and a newly formed Pershing unit for $1 billion. Under this proposal, Howard Hughes would become the surviving corporation. Currently, the New York-based investment advisor owns 37.6% of Howard Hughes shares.
In a letter to the board of directors at Howard Hughes, Ackman expressed his satisfaction with the company’s progress since going public over 14 years ago but also shared concerns about its stock price performance along with other long-term shareholders.
Howard Hughes is headquartered in The Woodlands, TX and became solely focused on real estate last August after spinning off its Seaport Entertainment Group. Shortly after this spin-off occurred, reports from The Wall Street Journal indicated that Pershing Square was considering making an offer to take Howard Hughes private.
Following news of this potential buyout offer on Monday, shares of Howard Hughes saw an increase in value.
