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According to the New York Post. According to the New York Post, creating “a modern-day Berkshire Hathaway” is no mean feat, but that’s exactly what the billionaire investor and hedge fund manager Bill Ackman aims to do The CEO of Pershing Square plans to increase his stake in real estate firm Howard Hughes Holdings and take the company private.
Ackman said in a letter to investors that Pershing currently owns a 37.6% stake in HHH and plans to offer $85 per share to buy the rest of the company.
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“With apologies to Mr. Buffet, HHH would become a modern Berkshire Hathaway that would acquire controlling stakes in operating companies,” wrote Ackman, 58, who has a net worth of $9.2 billion.
After the news, Howard Hughes shares rose 9.5% to $78.62. Ackman has been involved with the real estate company for a decade and only stepped down from its board in April after serving as chairman since 2010.
“We, like other long-term shareholders and this board, are displeased with the performance of the company’s stock price,” Ackman said in the letter, he said. Reuters. When the deal is completed, it would increase Pershing Square’s stake in Howard Hughes to between 61% and 69%, depending on how many investors agree to be bought out from the 38% it currently holds.
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Howard Hughes was an offshoot of the real estate investment trust General Growth Properties, which formed its own entity in 2010. It owns and manages various types of real estate in the United States, including commercial, residential and mixed-use. It has a market value of $3.6 billion.
Ackman formed Pershing Square in 2004. One of his most notable moves was the rescue of mall operator General Growth Properties, from which Howard Hughes became involved. According to Forbes, Pershing Square’s stock portfolio is concentrated in seven companies, including Chipotle, Hilton and Google parent Alphabet, the latter of which has more than 20% of its shares invested, according to The Motley Fool. Ackman is notable among other fund managers because of his large social media following with over a million followers on X.
